What do you think when you see a product for sale at a steep discount to its past price range? Most people would probably give one of two answers: (1) there's something wrong with the product, or (2) it's a bargain.

I think that Brookfield Renewable (BEP 0.19%) (BEPC 0.09%) is a great example of the latter. This high-yield dividend stock is down nearly 50%. But it's a screaming buy right now for investors seeking passive income.

Behind the steep decline

Brookfield Renewable's share price skyrocketed from 2019 through early 2021. However, it's been mainly downhill for the renewable energy stock since then. What happened?

For one thing, Brookfield Renewable's valuation reached unsustainable levels. A significant pullback is unavoidable when that happens.

The Federal Reserve's aggressive interest rate hikes in 2022 also weighed heavily on Brookfield Renewable's shares. The increased cost of capital caused investors to bail on the stock, as they did many others.

This dynamic carried over into 2023 to some extent. Another issue was that investors set their sights on high-flying tech stocks, leaving utility stocks such as Brookfield Renewable behind.

An income investor's dream

This steep decline, though, has helped make Brookfield Renewable stock even more of an income investor's dream. The company trades under two tickers: BEP for its limited partnership units and BEPC for its corporate entity shares. Both offer high dividend yields -- nearly 5% for BEP and 4.6% for BEPC.

However, a falling share price isn't the only factor behind Brookfield Renewable's attractive yield. The company has increased its distribution by a 6% compound annual growth rate since 2012.

Look for the distribution increases to keep on coming in the future. Brookfield Renewable's management is confident that the renewable energy provider will be able to grow its distribution by 5% to 9% per year over the long term.

Macroeconomic issues shouldn't prevent Brookfield Renewable from delivering that level of growth, either. Roughly 90% of the company's cash flow is contracted under 13-year power purchase agreements (PPAs). Around 70% of its revenue has built-in inflation escalators.

You might wonder if there's a gotcha with BEP's higher yield compared to BEPC's. The main drawback to investing in BEP is that there are some tax hassles associated with limited partnerships. Brookfield Renewable created the BEPC shares in large part to avoid those issues.

Something for growth investors, too

While I think that Brookfield Renewable is a great stock for income investors seeking passive income, the stock offers something for growth investors, too. The company believes that it will be able to deliver total returns of between 12% and 15%.

That level of growth appears to be quite attainable, in my view. It's a foregone conclusion that the demand for renewable energy will continue to rise significantly over the next decade and beyond. The push to lower carbon emissions isn't going to magically disappear. Countries and large corporations won't hit their carbon reduction goals without more renewable energy.

Even if climate change wasn't an issue, though, it's likely that market dynamics would drive the demand for renewable energy higher. Onshore wind and solar are more cost-effective than coal and gas (and have been for several years).

Brookfield Renewables is in a great position to help meet the growing demand. The company's current assets include hydroelectric, wind, solar, and storage facilities across the world with a total capacity of around 31,500 megawatts. Its development pipeline features roughly 143,400 megawatts of renewable power assets (focused primarily on wind and solar). Brookfield Renewable is also investing in carbon capture and storage.

The bottom line is that Brookfield Renewable checks all of the boxes when it comes to renewable energy. With the near certainty of tremendous growth in the demand for renewable energy, this stock looks like a good pick for both income and growth investors.