2 Incredibly Cheap and Reliable Dividend Stocks With Yields Up to 5.5% to Buy Now

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There are two very big trends going on in the world when it comes to energy, but they might not be what you are expecting: The first is that the global population is growing. The second is that lower-income countries are moving up the socioeconomic ladder.

These two trends are what you really need to understand when looking at the clean energy transition that's also happening right now. And when you do, you'll understand why Brookfield Renewable Partners (NYSE: BEP) and Chevron (NYSE: CVX) are both cheap and reliable dividend stocks you'll find attractive today.

Oil and gas are being replaced by cleaner alternatives, but slowly

The world has gone through energy transitions before, shifting from biomass (wood) to coal, and from coal to oil. What's interesting is that, when you examine the world's biggest sources of energy, biomass and coal are still material producers of power, despite having been dethroned as the main source by other options.

Oil and natural gas are No. 1 today, but that seems likely to change as clean energy demand and production grow.

A road sign that says easy money 1 mile.
Image source: Getty Images.

But just like previous energy transitions, it is highly unlikely that solar and wind suddenly replace oil and gas. In fact, energy industry watchers largely agree that oil and natural gas will remain important for decades to come even as clean energy grows in importance.

The reason? A more populous world and higher incomes will require an all-of-the-above approach because the demand for energy grows along with the population and incomes. Demand for oil and natural gas might even increase!

So investors have two energy plays to consider. The first is to buy a company like Brookfield Renewable Partners that benefits from clean energy's growth. The second is to buy an oil and natural gas company, like Chevron, that can continue to benefit from the still-strong underlying demand for carbon fuels. The best part? Both of these high-yield stocks look cheap right now.

Chevron has been marked down by 20%

Chevron's stock price has fallen roughly 20% from its recent peak in late 2022. That has a lot to do with the price of oil, which has also declined over that same span. That makes complete sense because Chevron is an integrated energy company, with top and bottom lines that are heavily influenced by energy prices.

But as an integrated energy company, it also has operations in the midstream (pipelines) and downstream (chemicals and refining) sectors. Having exposure to all three helps to even out financial performance over time. It is a relatively conservative way to invest in the energy space.