Two paths to high-yield renewable growth

Article Excerpt

BROOKFIELD RENEWABLE ENERGY PARTNERS L.P. $37.27 (Toronto symbol BEP.UN; Units outstanding: 265.2 million; Market cap: $10.1 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.6%; www.brookfieldrenewable.com) owns 207 hydroelectric generating stations, 37 wind farms and five natural gas-fired plants. In all, it has over 7,284 megawatts of generating capacity. Roughly 24% of that capacity is in Canada, with another 50% in the U.S., 13% in Latin America and 8% in Europe. In the three months ended September 30, 2015, Brookfield’s cash flow per share rose 2.2%, to $0.46 from $0.45 a year earlier. To further boost its power output, Brookfield will keep acquiring or building hydroelectric plants and wind farms. To cut its risk, it now sells virtually all of its electricity under long-term agreements. They are an average of 24 years long. Brookfield also acquires firms with long-term contracts in place. The company is part of the consortium buying Isagen SA from the Colombian government. Isagen owns six hydroelectric plants…