Bet on a Renewable Future With This Dividend Stock

Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) stock has dropped 7.6% in 2018 as of close on August 16. However, shares have proven to be robust as the private and public sector is increasingly embracing renewable energies. The stock has climbed 50% over the past five years. It also boasts an attractive dividend.

The company released its second-quarter results on August 3. Normalized funds from operations (FFO) rose to $206 million compared to $170 million in the prior year. Brookfield ultimately reported a $2 million net loss in comparison to net income of $38 million in Q2 2017. Actual generation and long-term average generation both showed steady growth year over year.

Brookfield invested $450 million into growth and development initiatives in the second quarter. The company aims to achieve long-term margin expansion and managed to increase its European wind and solar portfolio.

The stock boasts a quarterly dividend of $0.49 per share representing a 6% dividend yield.

The Canadian government continues to prioritize renewable energy investment while also seeking to sustain the lucrative domestic oil and gas industry. South of the border the Trump administration has been viewed as hostile to renewable energy investment but states and municipalities have vowed to commit to a reduction in emissions in spite of a withdrawal from the Paris Climate Accord.

There are still massive improvements to be made, as pointed out in the UN report on global trends in renewable energy for 2018. In 2017, 12.1% of global power came from clean sources, which represented a minor 1.1% increase from the prior year. International bodies are applying pressure to push this number higher into the next decade.