Get steady income from long-term contracts

Article Excerpt

The best renewable power stocks, like these two, get most of their revenue from guaranteed, long-term contracts. Those deals will let them keep raising their dividends. BROOKFIELD RENEWABLE PARTNERS LP $70 remains a buy. The partnership (Toronto symbol BEP.UN; High-Growth Dividend Payer Portfolio, Utilities sector; Units outstanding: 311.3 million; Market cap: $21.8 billion; Dividend yield: 3.3%; Dividend Sustainability Rating: Above Average; www.bep.brookfield.com) owns 219 hydroelectric generating stations, 104 wind farms and 4,969 solar-power facilities. With the March 2020 payment, Brookfield raised its quarterly distribution by 5.3%, to $0.5425 U.S. a unit from $0.515 U.S. On July 30, 2020, the partnership handed out one share of Brookfield Renewable Corp. (Toronto symbol BEPC) for every four units that investors held in BEP.UN. The new shares, which are the economic equivalent of the partnership units, will make it easier for index funds and ETFs, along with investors from outside North America, to invest in the business. Right now, many of those investors avoid the units of…