2 Reasons Why This High-Yield Renewable Energy Stock Could Continue Soaring
One of the main draws of Brookfield Renewable Partners (NYSE: BEP) is the generous cash distributions it pays investors. Thanks to long-term power supply contracts, the global renewable power company generates tons of steady cash flow, which enables it to pay an eye-catching 5.5%-yielding distribution at the moment.
However, as attractive as that payout is, it's only part of the return story. The other component is the company's compelling growth potential. Thanks to its leading position in the global shift away from carbon-based energy, the company conservatively estimates that it can organically grow funds from operations (FFO) per unit by 8% to 10% annually, which should power 5% to 9% annual growth in the shareholder payout. In addition to that, the company has several acquisitions in the pipeline that could fuel growth well above that forecast. Add those two factors together, and Brookfield appears to have the fuel needed to continue its impressive performance where it has delivered a total return of more than 25% over the past year.
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Source: Fool.com
