Brookfield Renewable: A Most Promising Venture

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Now, Brookfield Renewable, a name that trips rather nicely off the tongue, has been having a positively ripping good time of late. Last year, you see, proved to be a veritable triumph, with financial results reaching heights that would make a lesser company positively green with envy. They’ve managed to secure growth, a thing one always appreciates, and this, naturally, has allowed them to continue increasing their dividend – a yield of nearly 4%, which is, as they say, rather decent indeed. It’s a company that appears to be on a most agreeable upward trajectory, and one can’t help but feel a touch of optimism when considering its prospects.

The outlook, as far as one can tell, is exceedingly bright. They anticipate continued brisk growth for years to come, positioning them rather splendidly to generate powerful total returns for investors. A truly fortunate state of affairs, wouldn’t you agree?

A Dash of Power, a Spot of Growth

Last year, Brookfield Renewable conjured up a rather impressive $1.3 billion in funds from operations (FFO), or $2.01 per share – a 10% increase from the previous year. A most agreeable improvement, and one that speaks volumes about the efficacy of their operations. This success stems from the robust performance of their existing clean energy businesses, their development activities, and a series of recently completed acquisitions. One can scarcely ask for a more favorable combination of factors.

Their legacy hydroelectric business, a stalwart of the industry, generated a robust FFO of $607 million, up 19% year-over-year. This surge, it seems, is largely due to increased revenue from commercial initiatives and stronger generation in Canada and Colombia. Demand for hydropower, you see, has rather accelerated, particularly from data center developers like Google, who are keen to secure a reliable supply of baseload power for their facilities. A sensible precaution, given the voracious appetite of these digital behemoths.

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Brookfield’s distributed energy, storage, and sustainable solutions platform also had a rather cracking year, generating $614 million in FFO – a nearly 90% year-over-year increase! This success, it appears, is largely attributable to their Neoen acquisition and the strong performance of Westinghouse, driven by a resurgence in nuclear power demand. A rather unexpected turn of events, but a welcome one nonetheless.

Plugged into the Future, What Ho!

Demand for clean power, one anticipates, will continue to surge in the coming years. Multi-decade trends such as reindustrialization, electrification, and the expansion of data centers will necessitate the development of all forms of energy. Brookfield, you see, finds itself in an ideal strategic position to support these megatrends, thanks to its leadership in renewable power, its expertise in battery storage, and its investment in the nuclear services company Westinghouse. A rather fortunate combination of assets, wouldn’t you say?

The company expects these catalysts will power more than 10% annual FFO per share growth through at least 2030. This, naturally, should support continued dividend growth of 5% to 9% annually. Brookfield is raising its payout by another 5% for 2026, building on its record of delivering at least 5% annual dividend increases since its public market listing in 2011. A most commendable consistency, and one that will undoubtedly appeal to discerning investors.

Brookfield delivered a record 8 gigawatts (GW) of new clean energy capacity last year, a 20% increase from the prior year. They continue to scale their development activities, aiming to deliver 10 GW of annual capacity additions by 2027. The company also continues to sign lucrative power contracts to support development projects and replace expiring agreements. They recently secured a deal to supply Google with up to 3 GW of hydropower. They’re also pursuing a first-of-its-kind opportunity to develop over 1 GW of battery storage capacity to stabilize a national power grid. Additionally, Brookfield continues to acquire expandable clean power platforms, including Neoen and Geronimo Power last year. A truly impressive undertaking, and one that speaks volumes about their ambition.

Total Return Potential: A Most Promising Outlook

Brookfield Renewable’s multiple growth catalysts underpin its expectation of delivering FFO per share growth of over 10% annually for the foreseeable future. This, naturally, should support at least 5% annual increases in its nearly 4%-yielding dividend. This combination of income and growth positions the company to deliver mid-teens annualized total returns, making Brookfield a great stock to buy and hold for the long haul. A most promising venture, and one that deserves the attention of any investor with a modicum of sense.

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2026-02-01 09:02