Brookfield Renewable is a strong long-term investment with potential for significant growth

From Nasdaq: 2025-03-10 04:19:00

Brookfield Renewable (NYSE: BEPC) operates a vast renewable energy platform with hydroelectric, wind, solar, and energy storage assets worldwide, positioning it well for the growing demand for clean energy. The company has three catalysts for double-digit earnings growth into the next decade, making it a strong long-term investment.

Brookfield Renewable has secured long-term power purchase agreements for most of its capacity, indexed to inflation, expecting 2-3% annual FFO growth. With market power prices rising, the company will benefit from expiring contracts and new, higher-rate agreements, potentially adding $150 million to annual FFO by 2029.

The company anticipates significant capacity growth, targeting 10 GW of new projects annually by 2027. With a massive development pipeline, including a 10.5 GW PPA with Microsoft, Brookfield expects development projects to contribute 4-6% to FFO per share each year through the end of the decade.

Brookfield Renewable plans to achieve 8-13% annual FFO per share growth through organic means and accretive acquisitions funded by capital recycling. With $12.5 billion committed to new investments last year, the company is evaluating $100 billion in potential M&A opportunities to further enhance its growth profile.

With the potential for double-digit annual FFO per share growth, a high-yielding dividend, and total annualized returns in the mid-teens, Brookfield Renewable presents a compelling investment opportunity. While not included in the Motley Fool’s top 10 stock picks, the company’s strong growth prospects make it a stock to consider for long-term investors.



Read more at Nasdaq: 3 Reasons Brookfield Renewable Is a Long-Term Buy for 2030 and Beyond