Hey Daisy. I can answer this one very quickly as BEP is actually one of our "Foundation Stocks" for 2020 that we will be releasing later this week. Here is a little sneak peak on what we've said about the company:
As the Oil & Gas industry faces crisis after crisis, there has been a clear shift towards renewables. Given this, investors would be foolish to ignore the sector. However, the renewable energy industry is still in its infancy and most stocks are still highly volatile. It is for this reason we like the best-in-class Brookfield Renewable Partners.
Brookfield is a household name and Renewable Partners is one of the largest pure-play renewable energy companies in the world. As of the end of the 2019 fiscal year, it had $50 billion in assets with operations in 27 markets and 17 countries. It has 5,274 power generating facilities with a total capacity of 19,000 Megawatts.
The company generates strong cash flow, and in 2019 it grew funds from operations (FFO) by 13% to $762 million, or $2.45 per share. Strong cash flow supports the company’s very attractive 4.74% yield. This Aristocrat is committed to raising the distribution by 5-9% on an annual basis and has a targeted FFO ratio of 70%.
As a market leader in a fast-growing industry, Brookfield Renewables is a unique blend of income and growth. Over the next five years, analysts expect the company to grow earnings by an average of 50% annually.
We are impressed by the company’s ability to balance growth and shareholder returns. In most cases, companies with a high yield often return cash to the shareholder at the expensive of growth.
Investors get both with Brookfield Renewable Partners.