The Smartest Dividend Stocks to Buy With $2,000 Right Now
The Smartest Dividend Stocks to Buy With $2,000 Right Now
Reuben Gregg Brewer, The Motley FoolSun, March 8, 2026 at 2:25 AM UTC
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Key Points -
NextEra Energy is a dividend growth stock driven by its clean energy expansion.
Brookfield Renewable is a high-yield clean energy opportunity that you can buy in two different ways.
10 stocks we like better than NextEra Energy ›
Dividend investors often get too caught up with yield and don't pay enough attention to dividend growth. That's a big risk if you hope to live off your dividend income in retirement. If you add dividend growth into your selection criteria, you'll likely be better off. NextEra Energy (NYSE: NEE) and Brookfield Renewable (NYSE: BEP)(NYSE: BEPC) are strong dividend options that score well on both yield and dividend growth.
NextEra Energy is a dividend growth machine
NextEra Energy has increased its dividend annually for more than 25 years. The utility company's dividend yield is currently around 2.7%, which is well above the market's 1.1%. But the real story is the rate of dividend growth, which averaged around 11% per year over the past decade.
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A hand planting money in the ground to show long-term investing growth.
Image source: Getty Images.
This is important because the historical inflation rate is around 3.8%. That eats away at the buying power of your dividends. Since NextEra's dividend has grown well above that rate, its buying power has expanded over time.
However, the real story here isn't the past; it is the future. NextEra owns a large regulated utility and is also one of the largest solar and wind power companies in the world. It is well-positioned to benefit as the world continues to shift toward cleaner energy alternatives. That should help keep the dividend growing nicely for years to come.
Brookfield Renewable is all in on clean energy
Brookfield Renewable is 100% focused on clean and renewable power. It has a global portfolio of hydroelectric, solar, wind, storage, and nuclear energy assets. It hasn't been around as long as NextEra, but the income that Brookfield Renewable pays out has increased steadily for more than a decade. The annualized rate of increase was 5% over that span, just over the rate of inflation growth over time.
The real draw here, however, is the yield. Brookfield Renewable Partners has a 5% yield, and Brookfield Renewable Corporation has a 3.8% yield. They represent the same entity and have the same dividend; the different yields stem from market demand for the different share classes. Institutional investors are often barred from owning partnerships, which creates a significant income opportunity for individual investors.
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Attractive yield and attractive income growth
If you are a dividend investor looking for a mix of yield and dividend growth, NextEra Energy and Brookfield Renewable have you covered. NextEra is a better pick for those with a dividend growth focus, while Brookfield Renewable Partners will likely appeal to those focused more on income. A $2,000 investment will let you buy around 20 shares of NextEra or 60 units of Brookfield Renewable Partners.
Should you buy stock in NextEra Energy right now?
Before you buy stock in NextEra Energy, consider this:
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Reuben Gregg Brewer has positions in Brookfield Renewable Partners. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool recommends Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
Source: “AOL Money”
