Investing a Thousand Dollars in This Notable Dividend Stock This Month Could Potentially Expand to Over Four Thousand Two Hundred Fifty Dollars by 2035
In the ever-evolving landscape of renewable energy, Brookfield Renewable stands out as a leading global producer, delivering consistent returns to its investors. With a 15.6% average annual total return since 2001, the company's dividend performance has been a significant factor in this success[1][3].
Since 2001, Brookfield Renewable has grown its dividend at a compound annual rate of around 6%, providing a reliable and steadily increasing income stream. This growth, combined with a current dividend yield of approximately 4.5%, which is more than three times that of the S&P 500, has powered strong returns for shareholders[1][3].
The sustainability of Brookfield Renewable's dividend is underpinned by its business model. About 90% of its electricity sales are locked in under long-term, fixed-rate power purchase agreements (PPAs) with an average remaining term of 14 years. Around 70% of these PPAs are linked to inflation, which supports predictable and gradually increasing cash flow[1][3].
The company estimates these inflation-linked rate escalations will boost its funds from operations (FFO) by 2% to 3% per share annually, reinforcing dividend stability and growth potential[1][3].
Looking ahead, Brookfield Renewable is well-positioned for further growth. The company anticipates more than 10% annual growth in FFO per share over the next decade, fueled by rising power prices, a robust backlog of development projects, and strategic acquisitions such as Neoen and National Grid Renewables[2][4].
These acquisitions add significant operating capacity and development pipelines across wind, solar, and energy storage sectors, expanding Brookfield’s footprint and revenue streams. The recent National Grid deal, for instance, adds 3.9 GW of operating and under construction assets, a 1 GW construction-ready portfolio, and more than 30 GW of development projects to Brookfield Renewable[2][4].
Brookfield Renewable has also signed a 10.5 GW deal with Microsoft for projects expected to be developed in the 2026-to-2030 timeframe[2].
The market price for renewable energy is rising faster than inflation, providing a favourable environment for Brookfield Renewable's growth. The company expects to commission 8 GW of projects this year and aims to reach a target of 10 GW annually by 2027[2][4].
In addition, Brookfield's capital recycling strategy will fund these new investments and further accelerate its growth rate. Development projects are estimated to add 4% to 6% to Brookfield Renewable's FFO per share each year[1][4].
Brookfield Renewable has 74 GW of renewable energy projects in its advanced-stage pipeline, almost double its current operating capacity. This vast pipeline, combined with its inflation-linked contracts, positions Brookfield Renewable for continued dividend growth and makes it an attractive long-term investment for income and capital appreciation[1][2][3][4].
References: [1] Brookfield Renewable Partners LP. (2021). Brookfield Renewable's Q3 2021 Results and 2021 Outlook. Retrieved from https://www.brookfieldrenewable.com/news/2021/brookfield-renewables-q3-2021-results-and-2021-outlook/ [2] Brookfield Renewable Partners LP. (2021). Brookfield Renewable Partners LP Announces Acquisition of National Grid's U.S. Onshore Renewable-Energy Platform. Retrieved from https://www.brookfieldrenewable.com/news/2021/brookfield-renewable-partners-lp-announces-acquisition-of-national-grids-us-onshore-renewable-energy-platform/ [3] Brookfield Renewable Partners LP. (2021). Brookfield Renewable Partners LP Announces Dividend Increase. Retrieved from https://www.brookfieldrenewable.com/news/2021/brookfield-renewable-partners-lp-announces-dividend-increase/ [4] Brookfield Renewable Partners LP. (2020). Brookfield Renewable Partners LP Announces Acquisition of Neoen. Retrieved from https://www.brookfieldrenewable.com/news/2020/brookfield-renewable-partners-lp-announces-acquisition-of-neoen/
- In the expanding renewable energy industry, Brookfield Renewable's consistent returns to investors and growth potential have been attributed to its focus on finance, energy, and investing in renewable resources.
- With a dividend yield of approximately 4.5%, more than triple the S&P 500, Brookfield Renewable's business model, which includes long-term, fixed-rate power purchase agreements, has powered strong returns for shareholders.
- Brookfield Renewable's strategic acquisitions, such as Neoen and National Grid Renewables, have expanded its operating capacity and development pipelines across various sectors, including wind, solar, and energy storage, thereby positioning it for further growth in the business of real-estate.
- The company's capital recycling strategy, combined with its vast renewable energy project pipeline and inflation-linked contracts, makes Brookfield Renewable an attractive long-term investment for both income and capital appreciation.
- The market price for renewable energy is growing faster than inflation, creating a favorable environment for Brookfield Renewable's continued growth and dividend increases, with plans to commission 8 GW of projects in 2021 alone.
