Can Brookfield Renewable Partners Support Its Dividend?
Dividend investors looking at the renewable power space will most likely come across Brookfield Renewable Partners (NYSE: BEP) and its generous 3.3% yield. That's well more than twice what you would get from an S&P 500 index fund. Brookfield Renewable Partners' distribution has also been increased annually at an average 6% rate for a decade, adjusted for a spin-off. But, before you jump aboard, you should ask yourself: How safe is the distribution?
Brookfield Renewable Partners, as its name suggests, invests in renewable power assets. The foundation of its portfolio is a large hydroelectric business, which accounts for roughly half of the master limited partnership's revenues. The rest comes from a mix of wind (22% of revenue), solar (16%), and other assets (the remainder).
It also has a diverse geographic footprint, with operations in North America, Latin America, Europe, and Asia. And roughly 85% of its power is sold under contract, with an average remaining contract life of 14 years. It's basically a one-stop shop for those looking to invest in a diversified renewable power business.
Source Fool.com
