1.Westbridge Renewable Energy
WEB.V (TSXV)
Westbridge Renewable Energy stands out as a promising penny stock in the Canadian renewable sector, showcasing significant growth potential. With a notable dividend yield of 6.49% and an impressive five-year return of 356.25%, it may appeal to investors looking for solid income and capital appreciation despite a challenging one-year return of -33.23%. Analysts have set a 12-month price target of $8, reflecting a cautious optimism about its future performance.
Pros:
- Growth potential in renewables
- Strong historical returns
Cons:
- High volatility
- Recent negative performance
2.TransAlta Renewables
RNW.TO (TSX)
TransAlta Renewables stands as one of Canada’s leading renewable energy firms, boasting a diverse portfolio of wind, hydro, and gas facilities. With a solid dividend yield of 7.23%, it appeals to those seeking reliable income, although the stock has experienced a 1-year return of -11.49%. Analysts maintain a consensus rating of Buy, indicating potential for recovery and growth within this sector.
Pros:
- Diverse renewable energy portfolio
- Consistent monthly dividends
Cons:
- Negative 1-year return
- Market competition
3.TC Energy
TRP.TO (TSX)
TC Energy Corporation (TRP) stands out as a strong investment choice, particularly due to its robust nuclear power assets through Bruce Power. With a solid dividend yield of approximately 4.5% and expected EBITDA growth of 5-7%, it offers investors a reliable income stream alongside capital appreciation potential, reflected in a 1-year return of nearly 13% and a 5-year return of over 38%. Analysts maintain a consensus rating of Moderate Buy, highlighting its attractive valuation and growth prospects against competitors like Pembina Pipeline and Emera.
Pros:
- Strong dividends
- Low commodity exposure
Cons:
- Market volatility risk
- Dependence on energy prices
4.Northland Power
NPI.TO (TSX)
Northland Power, a prominent Canadian renewable energy firm, emphasizes steady growth through its focus on wind, solar, and innovative green solutions. With a dividend yield of 6.5%, it offers reliable income, despite a challenging 5-year return of -61.69% and a stagnant 1-year return. Analysts from National Bank Financial maintain an "Outperform" rating, highlighting the company’s potential for profitable growth with over 2.2 GW of projects currently under construction.
Pros:
- Focus on renewable energy
- Steady cash flow
Cons:
- Significant decline in returns
- High volatility
5.Innergex Renewable Energy
INE.TO (TSX)
Innergex Renewable Energy is a prominent player in the renewable energy sector, experiencing notable growth in both hydro and solar systems. With a dividend yield of 2.62%, the company has delivered an impressive 49.35% return over the past year, though its five-year performance shows a decline of 39.18%. While analysts maintain a C- rating overall, National Bank Financial Inc. rates it as "Outperform," indicating some confidence in its future prospects.
Pros:
- Strong growth in hydro and solar
- Consistent revenue increases
Cons:
- Negative 5-year return
- Mixed analyst ratings
Final Words
As you consider investment options in renewable energy stocks this January 2026, remember to evaluate the performance and potential of each company thoroughly. Take time to compare these opportunities and conduct your own research to make informed decisions that align with your financial goals.
Frequently Asked Questions
TC Energy is notable for its nuclear power assets through Bruce Power, which supports its strong dividend yield of approximately 4.50%. The company has demonstrated consistent growth with a projected 5-7% EBITDA growth and offers a diversified energy infrastructure across North America.
In the past year, TC Energy has achieved a return of 12.94%. This performance is part of a longer trend, with a notable 3-year return of 32.30% and a 5-year return of 38.51%.
TC Energy offers a dividend yield of approximately 4.50%, with dividends distributed quarterly. The next dividend is set at $0.8500, scheduled for payment on January 30, 2026.
Investing in renewable energy stocks such as TC Energy carries risks including market volatility, regulatory changes, and commodity price fluctuations. It's essential to assess these risks in relation to your investment strategy and risk tolerance.
When comparing TC Energy to other renewable energy investments, consider factors such as dividend yield, growth potential, and market position. TC Energy's focus on nuclear and natural gas provides a unique blend of stability and growth potential in the energy sector.
TC Energy has a market capitalization of approximately $77.66 billion, reflecting its significant presence in the energy infrastructure market in North America.
