From those looking to strengthen their passive income streams with a reliable high-yield dividend stock to those eager to increase their green energy exposure, Brookfield Renewable (BEPC +0.00%) (BEP +2.38%) is a name that has likely come across many investors' radars.
Neither Brookfield Renewable's popularity nor its attractive dividend, which currently offers a 4.3% forward yield, is enough reason to click the buy button. Let's investigate Brookfield Renewable's financial situation further and take a look at how much exactly the company plans on returning to investors this year in the form of dividends.
NYSE: BEPC
Key Data Points
Operating green energy assets helps the company return green to investors in the form of dividends
A leading green energy producer, Brookfield Renewable operates a massive portfolio of global assets -- solar, wind, hydropower, and energy storage -- that totals about 37 gigawatts (GWs) of generating capacity. Customers sign long-term power purchase agreements to buy this power, providing management with substantial insight into future cash flows. This lets it plan for capital expenditures, with $7 billion to $8 billion of growth projects in its pipeline that it plans to advance over the next five years.
Investors have two options to gain exposure to Brookfield Renewable -- by buying shares of Brookfield Renewable or Brookfield Renewable Partners which trade under the stock tickers BEPC and BEP, respectively. Each pays the same per-share dividend, and in 2024, moreover, the company expects to return about $656.1 million in total. With Brookfield Renewable having paid investors $0.355 per share each quarter during the first three quarters of the year, that's likely to work out to about $1.42 per share in total for 2024.
Don't let the high yield spook you
While some investors leap at high-yielding dividends, others take a more circumspect approach, fearing that the company may be in financial distress. That's hardly the case with Brookfield Renewable, though, which has an investment-grade balance sheet. With the company projecting ongoing annual dividend growth of 5% to 9%, this is one passive income opportunity that investors shouldn't pass up so quickly.
