The Ultimate Energy Stock to Buy With $200 Right Now

Electricity demand is accelerating. Catalysts like the electrification of everything and increased digitalization require that the world installs a tremendous amount of new electricity-generating capacity in the future. Meanwhile, continued climate change concerns mean that the bulk of that power will need to come from lower-carbon sources, like renewable energy.

Few companies are in as strong a position to capitalize on this megatrend as Brookfield Renewable (NYSE: BEPC)(NYSE: BEP). The leading global renewable energy producer has the scale, expertise, and financial strength to be a driving force in supplying the world with more clean energy in the coming decades. Those are just some of the factors that make it the ultimate energy stock to buy right now for those with a couple of hundred dollars available to invest.

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A global leader

Brookfield Renewable operates one of the world's biggest clean power platforms. It has a diversified portfolio of hydroelectric, wind (onshore and offshore), solar (utility-scale and distributed generation), energy storage, and sustainable solutions across five continents.

The company owns interests in and manages 37 gigawatts (GW) of operating capacity. It sells that power to electricity utilities and large corporate power buyers. Its customers comprise eight of the 10 largest corporate buyers of clean power, which includes tech titans like Amazon, Meta Platforms, Microsoft, and Alphabet's Google.

Brookfield Renewable also has unparalleled access to capital and investment opportunities thanks to its relationship with leading investment manager Brookfield Corporation (NYSE: BN). It can leverage the relationships of its parent to partner with other investors to complete larger-scale investments. The company has also launched several investment funds that have raised capital to invest in emerging sustainable solutions, like carbon capture and storage, biofuel production, advanced recycling, and other opportunities.

Multiple growth catalysts

Brookfield Renewable has a staggering 200 GW of additional capacity under development, including 65 GW in advanced stages. That massive pipeline of opportunities has made it a partner of choice for large technology companies to meet their future power needs.

For example, it signed the largest-ever corporate power deal with Microsoft last year. Brookfield will develop over 10.5 GW of new renewable energy capacity for the technology company between 2026 and 2030 to support its cloud and AI ambitions. That's nearly eight times larger than the previous record for a corporate power purchase agreement. Brookfield is one of the few companies with the scale and expertise to develop the power capacity large technology companies will need in the future.

The company's development pipeline is only one growth driver. It will also continue to benefit from rising power prices (from inflation indexation in its existing power contracts and capturing higher market prices when legacy agreements expire). Brookfield also provides ancillary services, allowing it to cross-sell other services to customers, such as adding battery backup storage to existing assets.

In addition to its organic growth drivers, Brookfield Renewable has a tremendous track record of making accretive acquisitions. The company and its partners have deployed over $30 billion into M&A over the past five years. Brookfield and several partners most recently agreed to buy leading renewable developer Neoen in a $10 billion deal to expand its battery storage expertise and presence in several strategic markets (France, Australia, and the Nordics). It's currently evaluating over $100 billion of potential M&A opportunities, which would add to its long-term growth potential.

Brookfield's multiple catalysts have it on track to grow its funds from operations by more than 10% per share each year for the foreseeable future. That growth is highly visible and secured through 2029, and increasingly visible and secured through 2034.

In addition to that visible earnings growth, Brookfield Renewable also pays a very attractive dividend. The renewable energy company yields over 5.5%. It plans to increase that payout by 5% to 9% annually over the long term.

Powerful total return potential

Brookfield Renewable is a global leader in renewable energy. That puts it in an excellent position to capitalize on this massive megatrend. The company has already secured significant growth, which gives it a lot of visibility into its ability to create value for shareholders.

With a dividend yielding over 5.5% and a business growing at a double-digit annual rate, Brookfield could produce total annual returns in the mid-teens. That makes it one of the best energy stocks to buy right now. It could turn a relatively modest investment into a much bigger future payday.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Matt DiLallo has positions in Alphabet, Amazon, Brookfield Corporation, Brookfield Renewable, Brookfield Renewable Partners, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Brookfield, Brookfield Corporation, Meta Platforms, and Microsoft. The Motley Fool recommends Brookfield Renewable and Brookfield Renewable Partners and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.