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The Top Energy Stocks to Invest in for the Year 2023

Nov 04, 2023 By Triston Martin

The energy industry is the symbolic engine driving the global economy. As countries expand their economies and move demand toward carbon-free energy sources, now is an excellent opportunity to take a closer look at energy companies, as increasing oil and natural gas prices make this an excellent time to do so. Below you will find the best energy stocks.

Brookfield Renewable

The production of renewable energy is one of Brookfield Renewable's primary focuses. It manages hydroelectricity, solar power, wind power, and energy transition assets. The firm enters long-term power purchase agreements (PPAs) with electric utilities and other major power consumers. Then it sells the electricity the assets generate to those customers at a predetermined rate.

Because of the contracts, Brookfield can produce cash flows more or less consistently, the majority of which are used towards paying an attractive dividend. The remaining funds will be used to further the company's goals of acquiring, developing, and expanding its renewable energy activities.

The organization is far behind schedule in developing initiatives using renewable energy. Brookfield anticipates that its cash flow per share will expand by as much as 20% annually until 2026, combined with other growth drivers like acquisitions and increased electricity pricing. This should be sufficient to sustain an increase in the yearly dividend of between 5% and 9%, making Brookfield an outstanding renewable energy dividend company.


Chevron is the preeminent energy firm operating on a worldwide scale. It has a worldwide integrated oil and gas industry that is comprised of assets for exploration and production, capabilities for refining, and a chemicals business. The corporation's massive size and integrated business activities allow it to weather the turbulence prevalent in the energy industry.

The cash flows produced by Chevron's heritage oil and gas activities are used to pay a dividend that is rising over time, repurchase shares, and invest in the company's future. In 2022, Chevron raised its dividend payment for the 35th consecutive year, which means the company more than meets the requirements to be considered a Dividend Aristocrat. Additionally, it intends to repurchase between $5 billion and $15 billion of its stock annually.

Reducing carbon emissions is one of the areas that Chevron plans to invest in for the company's future. The firm is investing in green hydrogen technologies, carbon capture, and storage technology. In addition, in 2022, it made a purchase of Renewable Energy Group for the sum of $3.15 billion. This transaction will help Chevron expedite its ability to meet its target of boosting its production capacity for renewable fuels to 100,000 barrels per day by the year 2030.

NextEra Energy

NextEra Energy is one of the most significant electric utility firms in the United States. Through its energy resources section, which sells clean energy to other utilities and end users across the country, the company is also a global leader in producing power from natural sources such as the wind and the sun.

These enterprises generate cash flow on a more or less consistent basis. It also distributes electricity, both of which are supported by government-controlled rates and power purchase agreements (PPAs) with consumers at set prices. Because companies and households require a consistent power supply, the business model has a high degree of adaptability.

TC Energy

Among the many companies that operate natural gas pipelines in North America, TC Energy is one of the largest. It operates natural gas pipelines in its native country of Canada, as well as in the United States and Mexico. In addition, the firm is the proud owner of a premium liquids pipeline infrastructure, which positions it as one of Canada's most successful oil exporters. It is also one of the major power producers in the nation and focuses on nuclear energy in addition to renewable energy sources.

Since these energy infrastructure assets are tied to regulated rates and fee-based contracts, the company's cash flows are highly stable. Because of its low-risk business approach, TC Energy has been able to sustain its dividend and grow in all market conditions. The corporation may now keep pushing forward with its expansion plans.

During this time, the company maintains a moderate dividend payout ratio. In addition, it has a credit rating that is among the highest in the pipeline industry. Because of these characteristics, the company has the financial freedom to continue growing its pipeline network and dividend. As a result of these factors, TC Energy is one of the less risky businesses in the energy industry.

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