They say a dividend yield over 4% is a flare. A warning. Usually, it is. But sometimes, just sometimes, it’s merely a fact. Brookfield Renewable Partners (BEP +2.15%) is offering nearly 5% right now. A little extra something for putting your money where the sun shines, or the wind blows, or the water rushes. So it goes.
Brookfield makes electricity. Not from burning things, mostly. Wind, water, sunlight, even a little bit of the atom. They can conjure up 250 gigawatts, which is a lot. Enough to power a small planet, probably. Or a very enthusiastic suburb.
The thing is, we’re all going to need more electricity. Not just because there are more of us, but because everything is electric now. Cars, factories, those little boxes that think for us. S&P Global says demand could jump 35 to 50% by 2040. That’s a lot of watts. Brookfield already has deals with Microsoft and Alphabet, those two companies that are building the future, and consuming a frightening amount of power in the process.
Everyone’s talking about renewable energy, of course. It’s the right thing to do, and also, eventually, the only thing we can do. Brookfield’s been at this for 24 years. They’re not new to the game. They’ve seen the fads come and go, and they’re still here, building windmills and harnessing the tides. A rare thing, consistency.
Brookfield: Two Names, One Company
They have two stock tickers. Brookfield Renewable Partners (BEP) and Brookfield Renewable Corporation (BEPC +1.79%). It’s a bit of a puzzle, this. They’re the same company. Same assets, same dividends. The difference is… paperwork. If you buy the “Partners” shares, you get a K-1 tax form. A headache. The “Corporation” shares give you a simple 1099. The universe has a sense of humor, doesn’t it? Index funds and ETFs don’t like partnerships, so they buy the Corporation shares, driving up the price. So it goes.
In 2025, they reported $1.3 billion in funds from operations. Up 13.8%. Not bad. They expect to grow that by 10% a year, and raise the dividends by 5 to 9%. Promises, promises. But they seem to be keeping them, so far.
They’re all over the place. North America, South America, Europe, Asia, Australia. Geographic diversity is a good thing. Spreads the risk. And the windmills, presumably.
The stock is up 14% this year, 37% over the past year. Investors are noticing. They see the potential. Growth. It’s a simple concept, really.
The Dividend: Will it Last?
They’ve increased the dividend for five years in a row. A 5% boost this year. That brought the total increase to 27%. Not insignificant. But the important thing is, they’re covering it. Their funds from operations rose 114% in that same period. Plenty of room to grow. So it goes.
They have long-term contracts. Averaging 13 years. 90% of their electricity sales are covered. Steady cash flow. And 70% of those agreements adjust for inflation. A nice touch. Keeps the money flowing, even when everything else is going up in price.
Their FFO payout ratio is 75%. A little high, perhaps. But they’re growing. Their dividend has grown at 6% a year over the past decade. Their FFO has grown at 8%. A small difference, but it matters. It means they can keep growing, even when things get tough.
It’s all a bit absurd, when you think about it. We’re building a world powered by sunshine and wind, trying to avoid the inevitable. But someone has to do it. And Brookfield, for all its corporate complexity, is quietly getting the job done. So it goes.
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2026-02-14 15:32