With its clean, renewable power, Brookfield Renewable Partners has strong conceptual appeal for investors. But just as important is its mix of hydroelectric, wind and solar power.
That diversity, along with multiple long-term contracts, provides stable cash flows. It also lets the firm continue to spur growth by building up its operations: in fact, there are over 157,000 megawatts of projects in its global development pipeline.
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BROOKFIELD RENEWABLE PARTNERS L.P. (Toronto symbol BEP.UN; www.bep.brookfield.com) owns 238 hydroelectric generating stations, 181 wind farms, 220 solar facilities, and 6,925 distributed generation and energy storage sites. In all, these projects have a gerating capacity of 32,500 megawatts.
Brookfield cuts risk by selling power from its plants under long-term contracts. That provides stable cash flows.
For instance, the company in 2022 signed a 40-year power purchase agreement with Hydro Quebec for its 265-megawatt Lievre hydroelectric facilities.
The company also recently teamed up with Cameco Corp. (Toronto symbol CCO) to acquire nuclear power plant operator Westinghouse Electric Company. They paid $7.88 billion U.S. for the facility. Brookfield owns 51% of the partnership, with Cameco holds a 49% stake.
Dividend Stocks: This new acquisition will help sustain the high payout for Brookfield Renewable Partners
In the quarter ended March 31, 2024, Brookfield Renewable continued to close acquisitions and start up new projects.
Those new businesses helped lift Brookfield’s revenue in the quarter by 12.1%, to $1.49 billion U.S. from $1.33 billion U.S. a year earlier. Cash flow also rose, up 7.6% to $296 million U.S. from $275 million U.S. Cash flow per unit rose 4.7%, to $0.45 U.S. from $0.43 U.S., due to more shares outstanding.
With the March 2024 payment, Brookfield raised your quarterly distribution by 5.2%. The new annual rate of $1.42 U.S. a unit yields a high 5.1%. The partnership aims to raise the annual payment by 5% to 9% each year.
Recommendation in Canadian Wealth Advisor: Brookfield Renewable Partners L.P. is a buy.
