The Best 3 Renewable Energy Stocks to Buy and Hold for Decades

The world is in the middle of a major energy transition. Dirtier energy sources are being displaced by cleaner ones in what is likely to be a decades-long shift in the way the world generates and uses power. You can go all in on that transition with a business like Brookfield Renewable (NYSE: BEP)(NYSE: BEPC), or you can hedge your bets with investments like NextEra Energy (NYSE: NEE) and TotalEnergies (NYSE: TTE). Here's a look at each one to help you make up your mind.

Brookfield Renewable is 100% clean

Brookfield Renewable has exposure to hydroelectric, solar, wind, battery storage, and nuclear power. All of which are important clean power sources, many of which are also renewable. The assets the company owns are spread across North America, South America, Europe, and Asia. If you are looking for a simple way to participate in the shift toward clean energy, Brookfield Renewable is a good choice.

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It also has a strong track record of success, with funds from operations growth averaging 8% over the past decade. Distributions increased 5% a year over that span. And the company's investment grade credit rating went up one notch along the way. Brookfield Renewable actively manages its portfolio, so there are always assets being bought and sold. However, the end result has been very impressive and should attract even more conservative investors.

The one wrinkle is that you can buy Brookfield Renewable in two different ways. The partnership share class offers a distribution yield of 5.2% while the corporate share class has a dividend yield of 3.8%. They represent the same business and have the same dividend payment; the difference is that the corporate shares are in higher demand among institutional investors. Small investors should feel comfortable with the partnership.

NextEra Energy is a giant in two businesses

NextEra Energy operates one of the largest regulated electric utilities in the United States. That is the foundation on which it has built one of the largest solar and wind power businesses in the world. This combination has led to 11% annualized dividend growth over the past decade. Half that rate of dividend growth would be considered good for a utility. NextEra Energy's dividend yield is 2.7%, which is actually above the utility average of nearly 2.5%.

In other words, you are getting an above-average yield and above-average dividend growth when you buy NextEra Energy. And given the ongoing shift toward cleaner energy sources, the company's long-term growth prospects seem just as rosy as ever. That said, management is calling for dividend growth to slow to a still very healthy 6% in 2027 and 2028.

TotalEnergies mixes the old with the new

TotalEnergies will be the hardest sell as a clean energy investment because it is an integrated energy giant. That means that it is a vertically integrated oil and natural gas business. If you only want clean energy, you probably won't want to buy TotalEnergies.

However, the company is unique among its peers in its commitment to investing its carbon profits into clean energy and electricity assets. In 2025, the company's integrated power division, which is where its clean energy assets live, accounted for roughly 12% of the company's business. The stock offers a way for investors to participate very directly in the transition process, noting that oil and natural gas are likely to remain important even as the the energy transition continues full speed ahead.

Add in TotalEnergies' 4.8% yield, and there's even more reason to like the stock. That said, U.S. investors have to pay French dividend taxes but can claim a portion back at tax time.

You can go all in on clean energy or hedge your bets

There is no single clean energy investment choice that will appease all investors. If you want to jump in with both feet, you'll probably like Brookfield Renewable. If you are a bit more conservative, NextEra Energy's utility business will probably help you sleep well at night. And if you recognize the benefits of carbon fuels and the opportunities of clean energy, TotalEnergies gives you exposure to both.

Reuben Gregg Brewer has positions in Brookfield Renewable Partners and TotalEnergies Se. 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.