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Globe and Mail
20 hours ago
- Business
- Globe and Mail
Prediction: This High-Yield Dividend Stock Will Crush the S&P 500's Returns Over the Next Decade
A high dividend yield often signals that a company's growth days are in the rearview mirror. In many cases, the high-yielding income stream makes up most, if not all, of the return the company delivers for investors. Given the lackluster returns of many high-yielding dividend stocks, investors seeking market-crushing returns will probably overlook Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) because of its more than 5% yield. However, that could prove to be a big mistake. I predict this leading renewable energy dividend stock will crush the S&P 500 's returns over the next decade. Here's why. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » A strong base return A high-yielding dividend is sometimes a warning sign for investors. The company might have a weak financial profile or lackluster growth prospects. Neither of those is an issue for Brookfield Renewable. The opposite is true for this company. For starters, the company backs its lucrative dividend with a top-notch financial Renewable sells about 90% of the renewable energy it produces under long-term, fixed-rate power purchase agreements (PPAs). Those PPAs have an average remaining term of 14 years while indexing about 70% of the company's revenue to inflation. That means Brookfield can bank on generating very predictable and steadily growing cash flow. The company estimates that the inflation escalation clauses embedded within its existing PPAs will power 2% to 3% annual growth in its funds from operations (FFO) per share. Meanwhile, power rates have been growing faster than inflation in recent years. That trend seems likely to continue, given the expected surge in power demand driven by catalysts like AI data centers. Brookfield anticipates that margin enhancement activities such as securing higher market power rates as legacy PPAs expire will add another 2% to 4% to its FFO per share each year. On top of generating very stable and steadily rising cash flow, Brookfield has a strong investment-grade balance sheet. It funds its business with long-term, fixed-rate debt and keeps ample liquidity on hand, to the tune of $4.5 billion at the end of the first quarter. Brookfield also routinely recycles capital, selling mature assets to fund higher-returning new investments, which enables it to maintain its financial flexibility. The company's combination of stable cash flow and balance sheet strength puts its more than 5%-yielding dividend on a sustainable foundation. It should provide investors with very bankable dividend income. A powerful growth profile Brookfield Renewable can grow its FFO per share at a 4% to 7% annual rate without investing any additional capital. That would be a solid growth rate for a high-yielding dividend stock. However, the company has the financial flexibility to invest heavily in growing its platform. It's currently targeting to deploy $8 billion to $9 billion or more into new growth opportunities over the next five years. Some of that capital will go into its massive backlog of renewable energy development projects. Brookfield currently has 74 gigawatts (GW) in its advanced-stage pipeline. That's nearly double its current operational capacity (43.3 GW). The company is ramping up its development capabilities to reach an annual commissioning run rate of 10 GW per year, which it expects to achieve by 2027. That's up from 8 GW this year. Development projects will add another 4% to 6% to its FFO per share each year. On top of that, the company plans to continue making accretive acquisitions, largely funded through capital recycling, to further accelerate its FFO growth rate. Brookfield recently closed its acquisition of European renewable power developer Neoen. Meanwhile, it agreed to buy National Grid 's U.S. onshore power platform, National Grid Renewables. Add it all up, and Brookfield believes it can grow its FFO per share at a more than 10% annual rate through 2034. The company's growth is highly visible and secured through 2029 and increasingly visible and secured over the subsequent five-year period. That easily supports its plan to increase its dividend by 5% to 9% annually. Brookfield has grown its payout at a 6% compound annual rate since 2001. It all adds up to the potential for producing market-crushing returns Brookfield Renewable pays a more than 5% yielding dividend, which provides investors with a strong base return. On top of that, the company expects to grow its earnings per share at a rate of more than 10% annually for the next several years. That should easily support its plan to increase its already high-yielding payout by 5% to 9% per year. Put it all together, and Brookfield could produce total annual returns in the mid-teens, which should crush the S&P 500's return over the next 10 years. That makes it a great stock to buy and hold right now. Should you invest $1,000 in Brookfield Renewable right now? Before you buy stock in Brookfield Renewable, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Brookfield Renewable wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Yahoo
01-06-2025
- Business
- Yahoo
If I Could Buy Only 1 High-Yield Dividend Stock in June, This Would Be It
Brookfield Renewable currently pays a dividend yielding more than 5%. The company has grown its payout by at least 5% annually for the past 14 years. It has powerful growth ahead. 10 stocks we like better than Brookfield Renewable › I love to collect dividend income. That's why I own many dividend stocks, most of which have higher-yielding payouts. I typically buy more shares of my favorite dividend stocks each month. However, if I could buy only one dividend stock this June, it would be Brookfield Renewable (NYSE: BEPC)(NYSE: BEP). Here's why it stands out as my top buy for dividend income this month. Shares of Brookfield Renewable have been drifting lower and currently sit more than 15% below their 52-week high. That slump has driven up the renewable energy company's dividend yield to more than 5%. That's several times higher than the S&P 500's dividend yield (which is less than 1.5%). The company supports its high-yielding payout with very durable cash flows. Brookfield sells about 90% of the power it produces under long-term, fixed-rate power purchase agreements (PPAs) with an average remaining term of 14 years. Most of those PPAs index power rates to inflation (70% of Brookfield's revenue). The power producer also has a strong investment-grade balance sheet, which provides further support for its high-yielding payout. Brookfield Renewable has a terrific record of paying dividends. The company has grown its payout at a 6% compound annual rate since 2001 and has raised its dividend by at least 5% in each of the last 14 years. Brookfield aims to grow its high-yielding dividend at a 5% to 9% annual rate. That shouldn't be a problem, given the powerful growth it sees ahead. The company estimates that its inflation-linked PPAs should grow its funds from operations (FFO) per share by 2% to 3% annually for the foreseeable future. Meanwhile, market rates for power have been rising faster than inflation. Because of that, Brookfield expects to lock in higher rates on new PPAs as legacy contracts expire. The company estimates that this catalyst will deliver an additional 2% to 4% in annual FFO per share growth over the coming years. On top of that, Brookfield is building new renewable power-generation capacity. The company expects to commission 8 gigawatts (GW) of new capacity this year. It's ramping up its development capabilities to a 10 GW annual run rate by 2027. Development projects should add another 4% to 6% to its FFO per share each year through at least 2030. Finally, Brookfield routinely recycles capital by selling mature assets and redeploying the proceeds into new, higher-returning investment opportunities. For example, the company recently sold its interest in First Hydro, generating almost 3 times its invested capital. It also sold an additional 25% stake in its Shepherds Flat wind farm for almost 2 times its invested capital. Meanwhile, it recently closed its acquisition of European renewable energy developer Neoen and agreed to buy National Grid's U.S. renewable energy platform. Accretive acquisitions like those can further boost its FFO per share each year. Put everything together, and Brookfield Renewable believes it can grow its FFO per share at a rate of more than 10% annually for the foreseeable future. That growth is highly visible and secured through the end of this decade and will be increasingly visible and secured as far out as 2034. Brookfield Renewable has everything I'm looking for and more in a dividend stock. It pays a high-yielding dividend backed by a rock-solid financial profile. The company also has an excellent record of increasing its dividend, which seems highly likely to continue. On top of all that, it has compelling total return potential. With a dividend yield of 5% and earnings growing by more than 10% annually, Brookfield could generate total annual returns above 15%, especially given its currently lower share price. That compelling combination of dividend income and upside potential is why it would be the dividend stock I'd buy if I could choose only one this June. Before you buy stock in Brookfield Renewable, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Brookfield Renewable wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt DiLallo has positions in Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable, Brookfield Renewable Partners, and National Grid Plc. The Motley Fool has a disclosure policy. If I Could Buy Only 1 High-Yield Dividend Stock in June, This Would Be It was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Brookfield Renewable: Q1 Earnings Snapshot
HAMILTON, Bermuda (AP) — HAMILTON, Bermuda (AP) — Brookfield Renewable Energy Partners LP (BEP) on Friday reported a loss of $108 million in its first quarter. The Hamilton, Bermuda-based company said it had a loss of 35 cents per share. The results fell short of Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for a loss of 26 cents per share. The operator of hydroelectric and wind power generation facilities posted revenue of $1.58 billion in the period. Its adjusted revenue was $857 million, also missing Street forecasts. Eight analysts surveyed by Zacks expected $910.9 million. Brookfield Renewable shares have increased nearly 2% since the beginning of the year. The stock has decreased slightly in the last 12 months. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on BEP at
Globe and Mail
08-03-2025
- Business
- Globe and Mail
3 Dividend Stocks To Buy and Survive a Market Crash
The S&P 500, Dow Jones, and Nasdaq saw their post-election gains erased thanks to on-again off-again tariffs between the U.S. and its closest friends, Canada and Mexico. Investors enjoying the extended bull run and the AI craze for the past couple of years were grimly reminded that everything can turn at a drop of a dime. Thankfully, the markets always provide ways to earn money even when the sentiment is bearish. Though not completely immune to uncertainty, certain companies that operate in essential and non-cyclical industries tend to be more resilient than those in other industries. Combine that with the promise of dividends, and you will have the makings of a recession-proof portfolio that can provide income as you weather the storm. So today, let's look at three dividend stocks to get you through a potential market crash and decide if they deserve a spot in your portfolio. How I Came Up With The Following Stocks To get this list, I accessed Barchart's Stock Screener Tool. Once there, I used the following filters: Number of Analysts: 12 and above. This ensures that the stocks appearing on the results are well-covered by Wall Street, giving me more confidence about the picks. Current Analyst Rating: 4.5 to 5 (Strong Buy). With this filter and values, I'll only get the top-rated companies from the market. Annual Dividend Yield: Left blank so I can arrange the results based on it. Market Sectors: Consumer Staples, Medical, and Utilities. These three industries are non-cyclical, as they offer services that people need regardless of the time of the year or current economic environment. I got 105 results with these filters, which I then arranged from highest to lowest yields. I'm pretty happy with the top three representing each industry I selected. So, let's discuss each of them, starting with number one: Brookfield Renewable Partners (BEP) Brookfield Renewable Partners is a global leader in renewable energy, owning and operating hydroelectric, wind, solar, and energy storage assets across five continents. The company also operates platforms for decarbonization solutions, which helps avoid over 250 million tons of carbon annually. The company focuses on sustainable power generation, leveraging long-term contracts to provide stable cash flows and dividend payments. Brookfield Renewable has notably and consistently increased its dividends for the past few years. Its forward annual dividend is $1.492 per share, translating to an excellent 6.80% yield. Meanwhile, analysts are bullish with the stock, rating it a strong buy with a 4.53 average score, and a high target price of $34, representing a potential 55% lift based on BEP stock's current trading price. With the current global trajectory of transitioning to clean energy at full swing, buying BEP stock might be your best bet for the long run. CVS Health Corporation (CVS) CVS Corporation, now known as CVS Health, is a leading healthcare and retail pharmacy company that operates a nationwide network of pharmacies, health clinics, and insurance services. It provides prescription medications, wellness products, and healthcare solutions through its CVS Pharmacy, MinuteClinic, and Aetna health insurance divisions. The company has more than 9,000 pharmacy locations conveniently accessible to many American populations, giving it excellent exposure to its target market. CVS currently pays $2.66 annually, reflecting a 4.07% yield based on current prices. Analysts are bullish on CVS stock over the next twelve months with an average score of 4.57 and a 24% potential upside based on an $81 high target price. Coca-Cola Company (KO) Last but not least is the Coca-Cola Company, one of the world's biggest and most prominently known beverage companies. The company has successfully leveraged its global presence to create a stable and profitable business, with strong growth in Q4'24. Net revenues (6%), operating income (19%) and EPS (12%) were all impressive for such a mature company. Moreover, the company is a Dividend King with 63 years of consecutive increases, making it an excellent candidate for any long-term income portfolio. Coca-Cola currently pays $2.04 annually, reflecting a 2.89% yield. And, of course, it shouldn't be surprising to say that KO is the highest-rated stock in this list with a 4.86 average score and a high target price of $85 - suggesting a near 21% potential upside over the next twelve months. Final Thoughts Regardless of your risk profile, there are appropriate times to be adventurous with your investments. With the way things are heading, this might not be one of those times. So, it's best to buckle down for a rough market season and protect yourself from the potential impact. Investing in these high-quality dividend stocks can be the first step to a resilient income portfolio. But, as always, don't neglect to do your research to solidify your decisions. It's your money, after all.
Yahoo
29-01-2025
- Business
- Yahoo
Calix Releases Fourth Quarter 2024 Financial Results
SAN JOSE, Calif., January 29, 2025--(BUSINESS WIRE)--Calix, Inc. (NYSE: CALX) today announced unaudited financial results for its fourth quarter of 2024, which have been posted as a letter to stockholders to the investor relations section of its website. Please visit the Calix investor relations website at to view the letter to stockholders. A conference call to discuss these results with President and CEO Michael Weening and CFO Cory Sindelar will be held tomorrow, January 30, 2025, at 5:30 a.m. Pacific Time / 8:30 a.m. Eastern Time. Interested parties may listen to a live webcast of the conference call by visiting the Events section of the Calix Investor Relations website. The live conference call will be available by dialing (877) 407-4019, or international (201) 689-8337, with conference ID#13750852. Participants may also click this link for instant telephone access to the event. The link will become active approximately 15 minutes prior to the start of the conference call. The conference call and webcast will include forward-looking information. A webcast replay of the conference call will be available following its completion and will be archived on the Calix Investor Relations website. About Calix Calix, Inc. (NYSE: CALX) – Calix is an appliance-based platform, cloud and managed services company. Broadband experience providers (BEP) leverage the Calix broadband platform, cloud and managed services model to simplify operations, subscriber engagement and services; innovate for their consumer, business and municipal subscribers; and grow their value for members, investors and the communities they serve. Our end-to-end platform, cloud and managed services democratize the use of data—enabling our customers of any size to operate efficiently, acquire subscribers and deliver exceptional experiences. Calix is dedicated to driving continuous improvement in partnership with our growing ecosystem to support the transformation of our BEP customers and their communities. Category: Financial View source version on Contacts Investor Inquiries: Nancy FazioliVP, Investor RelationsInvestorRelations@ (669) 308 3901 Sign in to access your portfolio
