Brookfield Renewable Partners L.P. (TSX:BEP.UN)(NYSE:BEP) invests in renewable energy projects around the world. It has $28 billion invested in more than 260 different power generating facilities in seven countries on three continents. Approximately 90% of its 10,700 megawatts of capacity is from hydroelectric power.
Brookfield generates steady cash flows by focusing on contracted areas. 90% of cash flows come from contracted services and its average contract is 16 years long.
Investors also like the company’s pure focus on renewable energy. Many other Canadian power producers still have exposure to coal power. Even some of the cleaner generators have some natural gas-fired assets in their portfolios. Brookfield is a pure-play renewable company, which should help investor sentiment.
Dividend growth has been rock solid. Brookfield has increased its annual dividend each year since its 2011 IPO. It started out with a distribution of $1.30 per share. It’s on pace to pay $1.78 per share in 2016. That’s a yield of 6.2%.
Brookfield is also looking to grow the business. It has $1.7 billion available in a corporate credit facility as well as a solid balance sheet that can easily handle more debt. It has a BBB credit rating from Standard and Poors.
And perhaps most importantly of all, it has the smart people of Brookfield Asset Management behind it. Brookfield has grown to be one of the largest asset managers in Canada with a market cap of $45 billion and $156 billion in assets on its balance sheet. Needless to say, these guys know what they’re doing.
