Ever since its 2011 founding, Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) has created riches. Over that period, the renewable-energy producer returned 12.2% annually. Over $4,500 from a $1,000 investment. Since its funds from operations (FFO) per share have grown by above 10% annually, the corporation can raise its dividend by at least 5%.
The corporation may generate higher returns down the road. Potential makes it one of the top energy stocks to invest $1,000 in today.
A profitable earnings stream Brookfield Renewable's 6% dividend yield is good. A $1,000 investment may yield $60 in dividends at such rate.
Renewable-energy company's huge reward is sustainable. Resilient cash flows support this notion. Under long-term power purchase agreements with utilities and other corporations, the business has locked in pricing on 90% of its electricity. It believes its portfolio will grow FFO per share by 2% to 3% yearly because 70% of its revenue is linked to inflation. Selling auxiliary items will boost FFO per share by 2% to 4% every year.
Brookfield's excellent balance sheet complements its consistent and rising cash flow. A BBB+ investment-grade credit rating and fixed-rate debt with no near-term maturities characterize the corporation. Management of investment funds gives it company liquidity and partner money.
Fast growth ahead Brookfield Renewable can grow. Inflation-linked rates and margin enhancement provide it a strong base growth rate.
In addition, the company has a huge development pipeline. Brookfield Renewable had 155 gigawatts (GW) of renewable-energy projects in development last year, including 24 GW in advanced stages. That's huge given its 33 GW operating capacity. Investment money are also substantially invested in developing more sustainable solutions by the company.
Carbon capture and storage, renewable natural gas, material recycling, solar panel production, and green ammonia are firm and partner investments. For each year, Brookfield expects retained cash flow-funded development projects to boost FFO per share by 3% to 5%.
Along with organic development, Brookfield aims to make accretive acquisitions to boost FFO growth. M&A might improve FFO per share by almost 9% yearly. Reselling mature assets to fund higher-return fresh investments will fund agreements. Last year, it invested $2 billion in numerous transactions, which should enhance cash flow this year. Within five years, Brookfield plans to spend $7 billion to $8 billion on accretive acquisitions.
Brookfield should improve its FFO per share by over 10% annually through 2028 thanks to its four growth drivers. That supports its long-term dividend increase of 5% to 9%. Brookfield's growth driver should help it reach its goal of 12% to 15% annual returns given its strong yield.
Strong returns potential Since its founding over a decade ago, Brookfield Renewable has made investors rich. With its high dividend yield and great growth potential, it may make them even more money. It is one of the greatest energy stocks to purchase now
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