How did Brookfield Renewable’s shares perform in 2021?
Shares of Brookfield Renewable Corporation ( BEPC -1.57% ) plunged 36.8% in 2021, according to data provided by S&P Global Market Intelligence. Meanwhile, the economically equivalent publicly traded partnership, Brookfield Renewable Partners ( BEP -2.22% ), slumped 17%.
How will Brookfield energy continue to deliver strong growth?
The company continues to target 12% to 15% annual returns, and it's made a number of acquisitions around the world to fuel its growth. With the general tailwinds in renewable energy and a push from the evolving Russian boycott as well as high oil prices, Brookfield looks poised to keep delivering solid growth.
Is Brookfield Renewable the best Tesla-style investment?
One of my favorites is Brookfield Renewable ( NYSE:BEP) ( NYSE:BEPC). It may not have provided Tesla-level returns over the past few years, but it's been a market-beating investment in its own right, and has some very real advantages making it the better investment. Here are two major reasons.
Why are Brookfield shares gaining on rising oil prices?
Though oil prices have cooled off modestly since the spike at the beginning of March, they remain elevated, with a gallon of gas still near record levels, above $4/gallon in the U.S. With the jump in oil prices and the geopolitical fallout from the war, including plans to boycott Russian oil and gas, it's clear why Brookfield shares were gaining.
Is Brookfield Renewable stock a good buy?
Brookfield Renewable Partners has received a consensus rating of Buy. The company's average rating score is 2.88, and is based on 14 buy ratings, 2 hold ratings, and no sell ratings.
Is Brookfield Renewable partners a good company?
Brookfield Renewable has an overall rating of 3.6 out of 5, based on over 307 reviews left anonymously by employees.
Is Brookfield Renewable partners profitable?
Brookfield Renewable isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth.
Should you buy BEP or BEPC?
BEPC is trading at a premium to BEP right now as it seems to be the vehicle investors are more willing to invest in. For pure income investors BEP is the obvious choice thanks to its higher yield and equal growth in distribution whereas from a total return perspective investors should opt for BEPC.
Why should I invest in Brookfield Renewable partners?
A steady grower with a reliable dividend Daniel Foelber (NextEra Energy): Brookfield Renewable offers an attractive one-two punch of short-term income paired with long-term growth. And for investors looking for a more pure-play renewable energy investment, I think that Brookfield Renewable is the better buy.
What is the best green energy stocks to buy?
5 top renewable energy stocksRenewable Energy StockTicker SymbolMarket CapitalizationNextEra Energy(NYSE:NEE)$169.8 billionBrookfield Renewable(NYSE:BEP) (NYSE:BEPC)$13.6 billionClearway Energy(NYSE:CWEN) (NYSE:CWEN.A)$7.0 billionFirst Solar(NASDAQ:FSLR)$8.3 billion1 more row
What is the difference between BEP and BEPC?
The only difference is that BEP is a publicly traded partnership sitting in Bermuda whereas BEPC is a Canadian corporation listed on NYSE and TSX as a means to "provide investors with greater flexibility in how they access BEP's globally diversified portfolio of high-quality renewable power assets".
Is clean energy a good investment?
The survey found that of the 400 companies with investments in renewable energy, roughly 20 percent of companies saw a return on investment of 15 percent. MIT researchers note that the ideal is an annual rate of return of between 20 percent and 25 percent.
Is Brookfield a good dividend stock?
A steady grower with a reliable dividend Brookfield Renewable has a 3.6% dividend yield compared to NextEra Energy's 2.1%. But long-term investors know that a reliable yield is much more important than a high yield.
Who owns Brookfield Renewable partners?
Brookfield Asset ManagementBrookfield Renewable Partners / Parent organizationBrookfield Asset Management Inc. is a Canadian multinational company that is one of the world's largest alternative investment management companies, with over US$725 billion of assets under management in 2022. Wikipedia
What companies does Brookfield Renewable own?
Brookfield Renewable PartnersTypePublicly traded partnershipTotal assetsUS$30.9 billion (2017)ParentBrookfield Asset ManagementSubsidiariesGreat Lakes Power and Isagen S.A., among othersWebsitebep.brookfield.com8 more rows
Why does Brookfield keep growing?
While recessions typically cause earnings to decline for most companies, Brookfield's usually keep growing. Why? First, as previously mentioned, the company's contract profile enables it to generate steady cash flow. Meanwhile, about 40% of its revenue has embedded growth due to inflation escalators. On top of that, it currently sells a significant portion of its power at below-market prices. As existing contracts expire, it can sell that power at higher market prices. They should hold up even during a recession because, thanks to climate change concerns, renewable energy is becoming increasingly valuable compared to power produced by fossil fuels. Brookfield also believes that its steadily growing scale will enable it to keep pushing down costs. Those reductions will likely be higher during a recession. Add it all up, and Brookfield believes it can grow the cash flows of its existing assets by 3% to 6% per year regardless of market conditions.
What happens when the economy softens?
When the economy starts to soften, people and companies pull back on spending. As a result, pricing and demand for many goods decline, impacting revenue and earnings for many businesses.
Does Brookfield have a recession?
Brookfield also believes that its steadily growing scale will enable it to keep pushing down costs. Those reductions will likely be higher during a recession. Add it all up, and Brookfield believes it can grow the cash flows of its existing assets by 3% to 6% per year regardless of market conditions.
Does Brookfield have a balance sheet?
Finally, thanks to its top-notch balance sheet, Brookfield has the financial flexibility to take advantage of investment opportunities that arise during recessions. The company can often acquire assets from financially strapped operators at excellent values, since there are typically fewer bidders.
NYSE: BEPC
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
What happened
Shares of Brookfield Renewable Corporation ( BEPC 2.12% ) plunged 36.8% in 2021, according to data provided by S&P Global Market Intelligence. Meanwhile, the economically equivalent publicly traded partnership, Brookfield Renewable Partners ( BEP 1.73% ), slumped 17%. Both significantly trailed the S&P 500, which rallied nearly 27% last year.
So what
On the one hand, Brookfield Renewable had an excellent year in 2021. It delivered record funds from operations (FFO) during the third quarter of $210 million, or 32% more than the prior year. Meanwhile, normalized FFO per share was up nearly 20% year over year through the third quarter.
NYSE: BEPC
Brookfield also continued to find attractive outside investment opportunities. The company and its partners agreed to invest $2.4 billion across a range of transactions last year. These deals will help power growth in the coming year.
Now what
Brookfield Renewable had another strong year operationally and strategically in 2021. However, its share price declined as it cooled off from a huge rally in 2020 after its parent company supplied more shares to the market.
Premium Investing Services
Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.
The renewable energy producer benefited from two key catalysts
Matthew is a senior energy and materials specialist with The Motley Fool. He graduated from Liberty University with a degree in Biblical Studies and a Masters of Business Administration. You can follow him on Twitter for the latest news and analysis of the energy and materials industries: Follow @matthewdilallo
What happened
Shares of recently created Brookfield Renewable Corporation ( NYSE:BEPC) leaped 13.3% in August, according to data provided by S&P Global Market Intelligence. While the renewable energy producer reported strong second-quarter results last month, that wasn't the only factor powering its big month.
So what
At the end of July, Brookfield Renewable Partners ( NYSE:BEP) completed two notable transactions. It closed its acquisition of TerraForm Power and completed a special distribution of Brookfield Renewable Corporation shares to its investors, which was akin to a stock split.
Now what
Brookfield Renewable's legacy corporate structure had been holding it back since some investors can't invest in limited partnerships. Because of that, they flocked to the newly minted Brookfield Renewable Corporation when finally given the opportunity to invest in a traditional corporation.
A political catalyst is powering the renewable energy company today
Matthew is a senior energy and materials specialist with The Motley Fool. He graduated from Liberty University with a degree in Biblical Studies and a Masters of Business Administration. You can follow him on Twitter for the latest news and analysis of the energy and materials industries: Follow @matthewdilallo
What happened
Shares of Brookfield Renewable ( NYSE:BEP)( NYSE:BEPC) rallied as much as 5.3% by 11 a.m. EST on Wednesday. Powering the renewable energy stock was the anticipated outcome of the Senate runoffs in Georgia.
So what
Democrats appear poised to capture both Senate seats in Georgia following a runoff election on Tuesday. That would give the political party full control over the U.S. government, making it easier to pass legislation. That powered speculation that they might offer more support to the solar energy industry, which could accelerate its growth rate.
Now what
With today's rally, shares of Brookfield Renewable are up almost 90% over the past year. Because of that, it's trading at a premium valuation. However, the company has a long history of growing shareholder value, which should continue in the coming years.