BEPC - 2 High-Yield Dividend Stocks That Are Screaming Buys in June
2024-06-02 06:13:00 ET
Higher interest rates over the past several years have weighed on the values of many renewable energy companies. They've made it more expensive for these companies to borrow money to fund development projects and acquisitions, slowing their growth. Higher rates have also driven down the value of income-focused investments to boost their yields compared to lower-risk alternatives like bonds.
As a result, top renewable energy dividend stocks Brookfield Renewable (NYSE: BEPC) (NYSE: BEP) and Clearway Energy (NYSE: CWEN) (NYSE: CWEN.A) trade at much lower share prices and higher dividend yields. That makes them screaming buys this June. Rates should fall in the future while the tailwinds driving renewable energy demand are only growing stronger. Because of that, they could produce powerful total returns in the coming years.
Shares of Brookfield Renewable currently sit about 30% below their peak from a few years ago before rates started rising. That decline and a steadily rising dividend have pushed its dividend yield up to around 4.5%. That's several times above the S&P 500's average of 1.3%.
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2 High-Yield Dividend Stocks That Are Screaming Buys in June