Brookfield Renewable (BEPC +0.00%)(BEP 2.11%) is a stellar dividend stock. The renewable energy producer has increased its payment by at least 5% in each of the last 13 years. It currently yields around 4.5%, several times above the S&P 500's 1.3% dividend yield.
The company's higher dividend yield enables investors to generate more income from every dollar they invest. Here's how much of the renewable energy producer you'd need to own to generate $1,000 of annual dividend income.
NYSE: BEPC
Key Data Points
Generate more income from your investment
Brookfield Renewable currently pays a quarterly dividend of $0.355 per share ($1.42 annually). At that rate, you'd need to own about 705 shares of the renewable energy company to generate approximately $1,000 of annual dividend income. With shares recently trading at around $31.50 apiece, you'd need to invest more than $22,200 to produce $1,000 of annual dividend income from this stock.
While that's a lot of money for many investors, it's much less than the nearly $77,000 you'd need to invest in an S&P 500 index fund to generate $1,000 of annual dividend income. Viewed another way, a $22,200 investment in the S&P 500 would only produce about $290 of annual dividend income.
Brookfield Renewable's income stream should steadily rise in the future. It's targeting 5% to 9% annual growth over the long term and should have plenty of power to achieve that plan. The company is benefiting from robust demand for renewable energy, which is driving rising power rates and lots of new investment opportunities.
A high-powered income stream
Brookfield Renewable pays a much higher dividend yield than the S&P 500, enabling investors to generate more income for every dollar they invest. It also expects to continue growing its dividend at a solid rate in the future. These factors make Brookfield Renewable an excellent stock for those seeking to generate passive income.
