What happened 

Brookfield Asset Management's (NYSE:BAM) buyout of TerraForm Power Inc (NASDAQ:TERP) is now complete, and the stock had a strange move higher today. According to Yahoo! Finance, shares are up 37% today, which is technically true based on yesterday's closing price, but it's not quite true for the full value shareholders are holding today. 

So what

The buyout offered shareholders a special dividend of $1.94 per share and either $9.52 per share in cash or a share of the new stock. Depending on how investors elected to be paid, Brookfield would prorate the transaction. 

Large row of solar panels with a sunny sky in the background.

Image source: Getty Images.

As it turned out, Brookfield paid the $1.94 per share dividend, $3.56 in cash for 37.4% of the share value, and 62.6% of the value investors owned in a new share. One share yesterday turned into 0.626 shares and $5.50 in cash today. The stock didn't really pop -- it's just adjusting to the new structure of the company today. 

Now what

What may be more notable for long-term investors is that TerraForm Power laid out how it sees its future. A dividend of $0.72 per share is targeted for next year on a payout ratio of 80% to 85% of cash available for distribution, and the expected growth rate of dividends long term is only 5% to 8%. That implies a dividend yield of just 5.4% today, which would be among the lowest in the yieldco industry. But this should be one of the more stable yieldcos now that Brookfield is in charge of its operations. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.