Brookfield Renewable Stock: Bull vs. Bear
Brookfield Renewable (NYSE: BEPC)(NYSE: BEP), as one of the largest renewable energy producers in the world, is helping lead the charge in the global race against climate change. However, despite its importance to the future of energy, shares of Brookfield have tumbled more than 30% from their peak over the past year. Here's a look at the tailwinds and headwinds that could impact Brookfield's ability to create shareholder value in the coming years.
Matt DiLallo (Bull): While shares of Brookfield Renewable have lost ground in the past year, it has a long history of creating value for investors. Since its inception, Brookfield has generated an annualized total return of around 19%. That has significantly outperformed the S&P 500's roughly 7% annualized total return during that timeframe.
Powering Brookfield's returns has been its ability to steadily grow its funds from operations (FFO) and dividend per share. From 2010 to 2020, Brookfield Renewable grew its FFO per share at a more than 10% annual rate, powered by higher power prices, acquisitions, and renewable energy development projects. Meanwhile, it has increased its distribution by a 6% annual rate since 2012.
Source Fool.com
