New investments keep its distributions high

Article Excerpt

BROOKFIELD RENEWABLE PARTNERS L.P. $45 (Toronto symbol BEP.UN; High-Growth Dividend Payer Portfolio, Utilities sector; Units outstanding: 308.5 million; Market cap: $13.9 billion; Dividend yield: 6.2%; Dividend Sustainability Rating: Above Average; www.bep.brookfield.com) has interests in 219 hydroelectric generating stations, 106 wind farms and 545 solar-power facilities. In total, it operates over 17,400 megawatts of generating capacity. Brookfield last raised its quarterly distribution by 5.1%, with the March 2019 payment. The new annual rate of $2.06 U.S. a unit yields a high 6.2%. In the quarter ended March 31, 2019, cash flow per unit jumped 17.7%, to $0.73 U.S. from $0.62 a year earlier. The gains came from new plants and higher electricity prices. With its institutional partners, Brookfield has agreed to invest in TransAlta Corp. (Toronto symbol TA) convertible securities paying 7% interest. It will pay a total of $750 million (Canadian), the first $350 million on May 1, 2019, and the remaining $400 million in October 2020. The securities give Brookfield the option to convert the funds…