1 Great Dividend Stock on Sale Right Now

Brookfield Renewable Partners (BEP 0.55%) (BEPC 0.17%) is down by more than 30% from its all-time high, but could it be a great opportunity for long-term investors? In this Fool Live video clip, recorded on Dec. 9, Fool.com contributors Jason Hall and Matt Frankel discuss why Brookfield Renewable could be such an interesting opportunity at the current stock price. 

Jason Hall: I want to talk about a company that I'm a huge fan of. And anybody that's ever spent any time around me knows this to be true, and that's Brookfield Renewable, ticker B-E-P. There's also ticker B-E-P-C, so BEP is the publicly traded partnership shares, and BEPC is the corporate shares. They're one to one, they are the same. Ownership of the same thing. There's tons of resources to figure out what the difference is, and why you should own one or the other.

But here's what's happened. Let me see if I can find the chart. And that's the stock price has come down substantially this year. It's come down 20%. And then from the peak, it's down 30%. It's actually within just a few percentage points from its all-time high. Now, even while that has happened, the company has continued to grow and deliver. What I want to do is, I want to make the case for the long term of why you would want to own this company.

I'm going to share some slides from their most recent Investor Day Presentation. Starting here, decarbonization initiatives, it's insane how much acceleration we have seen over the past year and a half. In January of last year, there were 21 countries that had net-zero commitments. Now there's 131.

Now, companies. Think about large enterprises here. It's more than tripled. There's over 3,000 companies that have net-zero commitments, and a lot of that is because they have substantial investor pressure for decarbonization. That's a big deal. Now, let's talk about the money, because at the end of the day, that's what matters. We've seen from about $5 trillion committed to almost $90 trillion committed to net zero over that same period, public commitments.

Again, there's enormous momentum here. Just scratching the surface, though, over the next 30 years, the upshot is $5 trillion to be spent in this area. It is an enormous market. There is no doubt about that. Specifically for Brookfield Infrastructure, they're expecting the next three decades you're going to see $150-plus trillion in total invested in that over that period of time. Just a couple of more charts to talk about why this company. First of all, you see substantial amount of equity capital that has been invested. Over the past decade, you can see there's some acceleration with their investments.

This is a company that has taken those investments historically and turned them into strong cash flow growth, double-digit compounded annualized growth rate for its cash flows, and then, Marc [Rapport, Fool contributor], this is something I know you'll like. It's turned that cash flow growth into growth in the distribution that it pays patient investors, and that's huge. That's why this has been a market-beating stock over the past decade. It's again, it's about 30% off its all-time high. It's still up a lot over the past few years, but the dividend yield is over 3% right now. It's about 3.5%. I think this is a great buying opportunity for a company you could hold for 30 years and do very well on.

Matt Frankel: I really like that one. I know Jason loves all the Brookfield stocks. There are a few of them. Can you give us a quick rundown? What are all the different Brookfields.

Jason Hall: Brookfield Renewable there. Starting at the top you have Brookfield Asset Management (BN -0.77%) ticker B-A-M. This is the parent company, one of the larger alternative asset management companies in the world. Then they have some subsidiaries that are publicly traded like Brookfield Renewable. Another one that I'm a big fan of is Brookfield Infrastructure (BIP -0.83%). So you want to think about the infrastructure need globally for growth and modernization, that's BIP. Probably my largest holding of these companies.

They are so well run. There's this incredible corporate culture. There has been consistent turnover of the executives at the subsidiaries. But they rotate people through, out of the parent company to come through, and it's part of their corporate culture about buying well, taking advantage of turns and the cycles to buy at low prices. Find assets that meet their growth capital return prospects. When they get to a critical mass, then they sell them for a premium and they take that capital and they do it again. They're just so good at it. The return profile for investors in those partnerships is incredible.