Brookfield Renewable (NYSE: BEPC, BEP): A Dividend-Powered Play on Renewable Energy Growth
Brookfield Renewable is an underappreciated gem in the renewable energy sector, and 2025 might just be the year it regains its shine. Despite a lackluster 2024, with corporate shares gaining just 4% and partnership units dropping 13%, the company’s operational performance and growth trajectory tell a much more compelling story.
Brookfield Renewable is already one of the largest renewable energy operators globally, with nearly 37 gigawatts (GW) of operating capacity. Yet, what truly sets it apart is the massive 200 GW pipeline it is currently developing. This positions Brookfield to continue capitalizing on the accelerating global demand for clean energy, driven by decarbonization goals and favorable government policies worldwide.
The company’s financials are just as impressive. In the third quarter of 2024, Brookfield Renewable’s funds from operations (FFO) per unit grew by 11%, putting it on track to deliver double-digit annual FFO growth—a benchmark it has consistently hit over the long term. This growth underpins the company’s ability to raise its dividend by 5% to 9% annually, a goal it has met consistently since 2001. Today, its dividend yield sits at an attractive 5%, far outpacing the S&P 500’s 1.2% yield.
2024 marked Brookfield’s largest year of growth investments yet, with billions raised through asset recycling and redeployed into acquisitions spanning wind, solar, and hydroelectric power. These strategic moves not only bolster its portfolio but also position the company to continue delivering on its 10%-plus annual FFO growth target for at least the next five years.
Brookfield also benefits from inflation-linked long-term power purchase agreements (PPAs), which provide reliable cash flows while allowing the company to reprice expiring contracts at higher market rates. Combined with its development pipeline and accretive acquisitions, these factors create a roadmap for sustained growth.
For U.S. investors, there’s an added advantage: purchasing corporate shares (BEPC) instead of partnership units (BEP) avoids the hassle of K-1 tax forms and foreign tax withholding.
With its strong dividend yield, visible growth drivers, and an ambitious development pipeline, Brookfield Renewable looks like a solid pick for investors looking to start the new year with a high-quality, income-generating renewable energy stock. It’s not just about collecting dividends—it’s about investing in a company that’s poised to grow those payouts and deliver strong total returns over the long haul.
