Want Decades of Passive Income? 2 Energy Stocks to Buy Right Now.

In today's rapidly evolving energy landscape, investors seeking reliable passive income over the long term should consider energy stocks that offer consistent dividend growth and exposure to sustainable energy sources. Two standout energy stocks that meet these criteria are NextEra Energy (NEE) and Brookfield Renewable (BEP, BEPC). Let's explore why these stocks are well-positioned to generate decades of passive income.



1. NextEra Energy (NEE)
NextEra Energy is one of the world's largest producers of wind and solar energy, with a strong track record of generating consistent returns for shareholders. The company's commitment to renewable energy and sustainable practices positions it well for long-term growth and dividend sustainability.

- Consistent Dividend Growth: NextEra has increased its dividend for 30 consecutive years, with an average annual growth rate of 11% over the past decade. The company expects to continue this trend, with a target of 10% annual dividend growth through at least 2026.
- Strong Earnings Growth: NextEra's adjusted earnings per share have increased at a 10% compound annual rate since 2013, powering its above-average growth rate and strong investment returns.
- Real Zero Plan: NextEra's commitment to eliminating carbon emissions from its operations by 2045 (Real Zero plan) demonstrates its long-term vision and commitment to sustainability, which is likely to attract investors and support the company's growth.



2. Brookfield Renewable (BEP, BEPC)
Brookfield Renewable is a global leader in renewable energy, with a diversified portfolio of hydroelectric, wind, solar, and energy storage assets. The company's strong financial performance and commitment to sustainable energy make it an attractive choice for long-term passive income.

- Global Leader in Renewable Energy: Brookfield is a global leader in renewable energy, with a diversified portfolio that reduces risk and provides exposure to multiple growth opportunities.
- Strong Earnings and Dividend Growth: Brookfield has delivered 12% compound annual growth in its funds from operations (FFO) per share since 2016 and has increased its dividend at a 6% compound annual rate over the last two decades.
- Robust Growth Outlook: Brookfield expects a trio of organic drivers (inflation-indexed rate increases, margin enhancement activities, and its vast development pipeline) to power 7% to 12% annual FFO per share growth through 2028. Additionally, accretive acquisitions are expected to drive its FFO growth rate into the double digits.



In conclusion, NextEra Energy and Brookfield Renewable are well-positioned to generate decades of passive income for investors due to their focus on renewable energy, consistent dividend growth, strong earnings growth, and commitment to sustainability. By including these stocks in their portfolios, investors can benefit from the long-term growth potential of the renewable energy sector while enjoying a stable stream of passive income.