TSX Domination: The 6% Dividend Stock to Watch

There’s never a bad time to think about building a passive-income stream. Fortunately, for Canadian investors, the TSX is loaded with high-quality dividend stocks to choose from. From century-long payout streaks to sky-high yields, there’s a Canadian dividend stock for every type of investor.

The dividend itself is typically the main selling point of a dividend stock. However, the company may have much more to offer than just passive income. Market-beating growth potential is one example of an added benefit that a dividend stock could offer.

With that in mind, I’ve reviewed a beaten-down renewable energy stock that deserves serious attention at these prices. A 6% dividend yield is enough of a reason to be intrigued, but there’s more than just a dividend to get excited about here.

If you’ve got a time horizon that allows you to be patient, this company should be on your watch list right now.

Brookfield Renewable Partners

At a $20 billion market cap, Brookfield Renewable Partners (TSX:BEP.UN) is a leader in the renewable energy space. The company has operations spread across the globe, spanning a range of different industries. Owning shares of this energy stock provides both instant and well-diversified exposure to the growing sector.

Alongside many of its peers, it hasn’t been the easiest past three years for the Brookfield Renewable Partners. Excluding dividends, shares are down nearly 50% since the beginning of 2021.

Part of the sell-off can be attributed to the stock’s market-crushing performance in 2019 and 2020. It’s only natural to see somewhat of a pullback after enjoying such strong returns in a very short period.

One positive of the stock’s recent struggles is that the dividend yield has shot up. At today’s stock price, Brookfield Renewable Partners’s dividend is yielding above a whopping 6%.

There aren’t many dividend stocks on the TSX with a yield that high, let alone one with a market-beating track record like that of Brookfield Renewable Partners.

A dividend stock for growth investors

Incredibly, even with shares down 50% from all-time highs, Brookfield Renewable Partners is still just about on par with the returns of the S&P/TSX Composite Index over the past five years. And that’s not even factoring in dividends, either.

In the decade leading up to 2021, Brookfield Renewable Partners had been a dependable market beater. And with the demand for renewable energy consumption only expected to continue growing, I don’t see any reason why the energy stock can’t continue its market-beating ways.

As a shareholder myself, I’m betting that it’s only a matter of time before Brookfield Renewable Partners is back to outperforming the market.

Foolish bottom line

What is there not to like about Brookfield Renewable Partners? In addition to a top dividend yield, the company has a proven market-beating track record in an industry that’s loaded with long-term growth potential. Shares are also trading at a massive discount.

It may take time for the energy stock to return to all-time highs. But at least while investors wait for that, there’s a 6% dividend yield to enjoy.

Don’t miss your chance to get a screaming discount on one of the top renewable energy stocks around.

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