In 2024, Canadian investors have experienced a positive year with the S&P/TSX Composite Index showing a 10% increase, excluding dividends. Despite the market’s strong performance, there are still opportunities available on the TSX for strategic investors.
One area of interest within the Canadian stock market is the renewable energy sector, which offers well-priced, high-yielding stocks currently. Although the sector has seen a decline since early 2021, long-term investors who are patient may find this a promising buying opportunity. It is important to note that quick profits may not be easily achievable in this sector.
While the renewable energy sector is currently facing challenges, it still presents significant long-term growth potential, making it an attractive investment for those bullish on the rise of renewable energy consumption. Investors looking to capitalize on this trend may want to consider adding discounted companies to their watch list.
One such company is Brookfield Renewable Partners, a global entity with a diverse portfolio of renewable energy assets. Despite a decline in share price since the beginning of 2021, the company has a history of outperforming the market and is positioned for future growth.
Another company to consider is Northland Power, offering a high dividend yield and potential for market-beating returns. Although the stock has faced challenges since early 2021, patient investors can benefit from the company’s dividend yield while waiting for potential growth.
In conclusion, while short-term investors may not see immediate gains in the renewable energy sector, patient investors have the opportunity to capture value and benefit from attractive dividend yields.
