6 Best Renewable Energy Dividend Stocks for 2021

Last Updated on August 11, 2021 by Henry John

As recent as today, Pres. Donald Trump pledges an orderly transition of power, further cementing what most of us have known for months: Biden’s presidency is inevitable.

Some investors have been complaining about how a Biden’s presidency will crash the market, but their complaints are fundamentally flawed. The way I see things (essentially the way things will turn out to be) is that Biden’s presidency will take money from one segment of the market to another. As simply as that.

Perhaps, sectors that performed really well under Trump’s adminstration will crash and sectors that performed terribly will rise like a phoenix under Biden.

On the 6th of January, “Democrats completed a sweep of the two U.S. Senate seats up for grabs in runoff elections in the state of Georgia, giving the party control of the chamber and boosting the prospects for President-elect Joe Biden’s ambitious legislative agenda” Reuters reported.

Renewable Energy is on the top of Biden’s agenda, and it’s no news. Obviously, one of the sectors that will rise like a phoenix under the Biden’s administration will be the Renewable Energy Sector. Money will certainly move heavily into renewables in the coming adminstration.

I’ve for long been preparing my readers for this prospect, and those interested in penny stocks, I created a list of Renewable Energy Stocks under $10 and $5.

The renewable energy space that’s focused heavily on solar and wind is a growth sector, one that’s expected to reach $1.5 trillion by 2025.

According to a Deloitte report, “Renewable growth may accelerate in 2021 as the new administration starts to execute on a platform that includes rejoining the Paris Climate Accord, investing $2 trillion in clean energy, and fully decarbonizing the power sector by 2035 in order to achieve a larger goal of net-zero carbon emissions by 2050.”

The renewable energy prospects makes a strong case for short-term and long-term plays.

If you’re interested in dividend-paying stocks in the Renewable Energy Sector, here are six Renewable Energy Dividend Stocks to consider:

1. Enviva Partners (NYSE: EVA)

Enviva Partners, LP produces and sells utility-grade wood pellets. The company’s products are used as a substitute for coal in dedicated and co-fired power generation, and combined heat and power plants.

EVA Dividend Yield: 6.85%

It serves power generators primarily in the United Kingdom, Europe, and Japan.

Enviva Partners GP, LLC operates as the general partner of the company. Enviva Partners, LP was founded in 2013 and is based in Bethesda, Maryland.

2. Brookfield Renewable Partners (NYSE: BEP)

Brookfield Renewable Partners L.P. owns a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India, and China.

The company generates electricity through hydroelectric, wind, solar, cogeneration, and biomass sources.

BEP Dividend Yield: 4.44%

Its portfolio consists of approximately 19,000 megawatts of installed capacity. Brookfield Renewable Partners Limited operates as the general partner of Brookfield Renewable Partners L.P.

The company was formerly known as Brookfield Renewable Energy Partners L.P. and changed its name to Brookfield Renewable Partners L.P. in May 2016. Brookfield Renewable Partners L.P. was founded in 1999 and is headquartered in Hamilton, Bermuda.

3. Atlantica Sustainable Infrastructure (NASDAQ: AY)

Atlantica Sustainable Infrastructure plc acquires, owns, and manages renewable energy, natural gas, transmission and transportation infrastructures, and water assets in the United States, Canada, Mexico, Peru, Chile, Uruguay, Spain, Algeria, and South Africa.

AY Dividend Yield: 4.30%

It owns 25 assets comprising 1,496 MW of aggregate renewable energy installed generation capacity; 343 MW of natural gas-fired power generation capacity; 1,166 miles of electric transmission lines; and 10.5 million cubic feet per day of water desalination assets.

The company was formerly known as Atlantica Yield plc and changed its name to Atlantica Sustainable Infrastructure plc in May 2020.

Atlantica Sustainable Infrastructure plc was founded in 2013 and is based in Brentford, the United Kingdom.

4. Clearway Energy (NYSE: CWEN)

Clearway Energy, Inc., through its subsidiaries, acquires, owns, and operates contracted renewable energy and conventional generation, and thermal infrastructure assets in the United States.

CWEN Dividend Yield: 4.28%

As of October 12, 2020, it had contracted generation portfolio of 7,000 megawatts (MWs) of wind, solar, and natural gas-fired power generation facilities, as well as district energy systems.

The company also owns thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,530 net MW thermal equivalent; and electric generation capacity of 139 net MWs.

Its thermal infrastructure assets provide steam, hot water and/or chilled water, and electricity to commercial businesses, universities, hospitals, and governmental units.

Clearway Energy, Inc. was founded in 2012 and is based in Princeton, New Jersey.

5. Nextra Energy Partners (NYSE: NEP)

NextEra Energy Partners, LP acquires, owns, and manages contracted clean energy projects in the United States.

NEP Dividend Yield: 3.54%

It owns a portfolio of contracted renewable generation assets consisting of wind and solar projects, as well as contracted natural gas pipeline assets. The company was founded in 2014 and is headquartered in Juno Beach, Florida.

6. Future Fuel Corp. (NYSE: FF)

FutureFuel Corp., through its subsidiary, FutureFuel Chemical Company, manufactures and sells diversified chemical, bio-based fuel, and bio-based specialty chemical products in the United States and internationally.

FF Dividend Yield: 1.85%

Future Fuel Corp. has the lowest dividend yield in this list however it’s P/E ratio is quite attractive. With a P/E ratio under 6, FF is relatively undervalued.

The company operates through two segments, Chemicals and Biofuels.

The Chemicals segment provides various custom chemicals that are used in the agricultural chemical, coatings, chemical intermediates, industrial and consumer cleaning, oil and gas, and specialty polymers industries; and performance chemicals, such as polymer modifiers, glycerin products, and various specialty chemicals and solvents.

The Biofuels segment is involved in the production and sale of biodiesel and petrodiesel blends; and the buying, sale, and shipping of refined petroleum products on common carrier pipelines.

This segment markets its biodiesel products directly to customers through trucks, rail, and barges.

The company is headquartered in Saint Louis, Missouri.

Leave a Comment