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This Top High-Yielding Dividend Stock Continues to Generate High-Powered Growth
BEPBrookfield Renewable Partners L.P.(BEP) The Motley Fool·2025-02-02 09:27

Core Viewpoint - Brookfield Renewable is demonstrating strong growth beyond being just an income stock, with a record year in funds from operations (FFO) and a consistent increase in distributions [1][3][4] Financial Performance - The company achieved a record FFO of 1.2billion,or1.2 billion, or 1.83 per share, with a 10% growth in FFO per share year-over-year [4] - In the fourth quarter, FFO per share grew by 21%, driven by inflation-linked cash flows and organic expansion initiatives [4] - The company has maintained a high-yielding distribution, currently over 5.5%, with a 5% increase marking the 14th consecutive year of growth [1][4] Growth Initiatives - Brookfield developed approximately 7 gigawatts (GW) of new renewable energy capacity last year and committed 12.5billionincapitaltoitsrenewableenergyplatforms[3][5]−Thecompanyisontracktoreachanannualrunrateofcommissioning10GWofprojectsby2027,supportedbyasignificantdevelopmentpipelineof200GW[9]StrategicInvestments−RecentinvestmentsincludeclosingdealsinInfinium,Orsted′soffshorewindfarms,andacquiringNeoen,whichareexpectedtodrivegrowthin2025[5][7][8]−TheinvestmentinInfiniumwillcontributetoresultsonceitsTexasproductionfacilityisoperational,providinggrowthoptionsintheeFuelsmarket[8]MarketDemand−Thereisincreasingdemandforcleanpowerfromlargecorporations,highlightedbyarecord10.5GWagreementwithMicrosoftforrenewabledevelopment[9]−Theoutlookforcleanpowerisbolsteredbycorporatedemandandsupportivegovernmentpolicies,enhancingBrookfield′spositioninthemarket[11][12]CapitalManagement−Thecompanyisactivelyrecyclingcapital,havingsold12.5 billion in capital to its renewable energy platforms [3][5] - The company is on track to reach an annual run rate of commissioning 10 GW of projects by 2027, supported by a significant development pipeline of 200 GW [9] Strategic Investments - Recent investments include closing deals in Infinium, Orsted's offshore wind farms, and acquiring Neoen, which are expected to drive growth in 2025 [5][7][8] - The investment in Infinium will contribute to results once its Texas production facility is operational, providing growth options in the eFuels market [8] Market Demand - There is increasing demand for clean power from large corporations, highlighted by a record 10.5 GW agreement with Microsoft for renewable development [9] - The outlook for clean power is bolstered by corporate demand and supportive government policies, enhancing Brookfield's position in the market [11][12] Capital Management - The company is actively recycling capital, having sold 2.8 billion in assets at strong returns, which will finance further growth initiatives [10] - Brookfield aims for 10%-plus FFO-per-unit growth going forward, with a strong liquidity position to support development and acquisitions [13] Total Return Potential - Brookfield Renewable is positioned to provide total annualized returns in the mid-teens, supported by a high-yielding dividend expected to grow by 5% to 9% annually [14][15]