3 Top Energy Stocks to Buy as 2024 Winds Down

As we approach the end of 2024, it's an ideal time to consider which energy stocks could offer robust returns in the coming year. With the energy sector being crucial to the global economy, selecting the right investments can provide stability and growth. In this article, we'll explore three top energy stocks to buy as 2024 draws to a close.



1. Brookfield Renewable (NYSE:BEP)(NYSE:BEPC) - A Globally Diversified Renewable Energy Producer

Brookfield Renewable is a leading global renewable energy producer with a diverse portfolio of hydroelectric, solar, wind, and energy transition assets. The company generates steady cash flows through long-term fixed-rate power purchase agreements (PPAs) with electric utilities and large power users. This enables Brookfield to pay out a significant portion of its earnings to investors through an attractive dividend while retaining the balance for acquisitions, development, and expansion.

Brookfield Renewable expects to increase its funds from operation (FFO) per share by more than 10% annually through 2027, supporting 5% to 9% annual dividend growth. With an enormous backlog of renewable energy development projects and other growth drivers, Brookfield is an excellent renewable energy dividend stock.



2. ConocoPhillips (NYSE:COP) - A Globally Diversified Oil and Natural Gas Producer

ConocoPhillips is a diversified oil and natural gas producer with operations around the world. The company stands out for its low operating costs, with an average cost of supply of $32 a barrel. ConocoPhillips complements its low cost of supply with a strong balance sheet, featuring an investment-grade bond rating backed by a low leverage ratio. This combination provides ConocoPhillips with plenty of cushion to weather periods of low oil and gas prices.

ConocoPhillips estimates it can produce a cumulative $115 billion in free cash flow over the next decade, assuming oil prices average $60 per barrel. With oil prices well above that level as of mid-2023, ConocoPhillips could generate an even bigger gusher of free cash flow.



3. NextEra Energy (NYSE:NEE) - A Leading Utility and Renewable Energy Producer

NextEra Energy is the world's largest producer of wind and solar energy, with a significant presence in the regulated electricity and natural gas utility sector. The company benefits from a diversified business model that combines the stability of regulated utilities with the growth potential of renewable energy.

NextEra Energy has consistently delivered strong earnings growth, driven by its expanding renewable energy portfolio and strategic acquisitions. The company's investment-grade balance sheet and conservative financial policy provide a solid foundation for continued growth and shareholder value creation.



In conclusion, as 2024 comes to a close, investors looking for top energy stocks should consider Brookfield Renewable, ConocoPhillips, and NextEra Energy. These three companies offer a combination of low costs, strong balance sheets, and cash returns, ensuring stability in market fluctuations. By prioritizing these factors, investors can position their portfolios for growth and resilience in the energy sector.