Latest news with #BrookfieldRenewable
Yahoo
2 hours ago
- Business
- Yahoo
A 300% Increase in AI Data Center Demand Will Propel Growth for These 3 High-Yield Stocks
Artificial intelligence effectively lives in data centers. Demand from data centers for electricity is projected to increase by 300% over the next decade or so. NextEra Energy, Dominion Energy, and Brookfield Renewable are all set to benefit from this increase in power demand. 10 stocks we like better than Dominion Energy › Artificial intelligence (AI) isn't technically a living thing, even though it can seem like one at times. The truth is, if you stop providing electricity to the hardware that supports any AI system, it ceases to operate. And that's the big story behind the growth opportunity ahead for NextEra Energy (NYSE: NEE), Dominion Energy (NYSE: D), and Brookfield Renewable (NYSE: BEP)(NYSE: BEPC). Each of these high-yield stocks offers investors a way to profit from growth in the AI space without having to try to pick an AI winner. At its current share price, NextEra Energy has a 3.2% dividend yield. That compares to a 1.3% average yield for stocks in the S&P 500 index and the 2.9% yield of the average utility. You can find utilities with higher yields, but NextEra's is relatively attractive. The real story here, however, is dividend growth. Management has boosted NextEra's dividend at a 10% annualized clip over the past decade, and it expects to continue doing so at about that rate over the next couple of years. Its payout growth has been supported by the utility's steadily growing regulated business in Florida and, more to the point, its fast-growing clean energy business. The clean energy business sells power to other companies under long-term contracts. Large companies are increasingly looking for clean energy solutions as they expand, including the technology companies that are powering the AI revolution. And AI-related electricity demand in the United States is projected to increase by 300% over the next decade or so. Dividend growth investors looking for a way to tap into the AI sector while still maximizing yield will want to do a deep dive on NextEra Energy today. Dominion Energy is a turnaround story, and the stock could be appealing to investors who don't mind taking on just a little extra risk for a lot more yield. The regulated electric utility's yield at the current share price is around 4.7%, which is well above the industry norm. The risk here, however, is pretty low, given the company's government-granted monopolies in the regions it serves. One of those regions, Virginia, happens to be among the largest data center markets in the world. Add in a large offshore wind farm Dominion is building in the state, and it seems well-positioned to take advantage of the added demand that AI will create. The problem here is that the utility is currently focused on strengthening its balance sheet, which in part entails reducing its dividend payout ratio to bring it back in line with its peers. Basically, expect dividend growth at Dominion Energy to be on hold for at least a couple of years. However, investors who buy today will get a well-above-average yield, which seems ample compensation for income seekers as they await the stock's return to dividend growth in the future. At the current share price, Brookfield Renewable Partners yields 6.2%. The company also has a roughly identical corporate share class with a lower 5% yield, a function of the higher demand for those shares. As the name implies, Brookfield Renewable invests in renewable power assets such as hydroelectric, solar, and wind, as well as battery storage and nuclear power. Unlike NextEra and Dominion, Brookfield Renewable operates on a global scale, allowing it to take advantage of AI and data center demand wherever it is popping up. For example, Brookfield Renewable has inked a deal with Microsoft to provide the tech giant with 10.5 gigawatts of new renewable power over the next decade. The purpose of the deal is specifically to support Microsoft's data center expansion. This shows what Brookfield Renewable's globally diversified portfolio can support. Investors should take a serious look at the high-yield opportunity here. Wall Street is excited about artificial intelligence and its rapid development, but many investors are focusing specifically on the direct AI plays. It's always tough to accurately pick long-term winners in fast-changing emerging markets. However, it is pretty clear that no matter which AI companies wind up the big winners, they will all need reliable access to growing supplies of electricity. And that means that high-yield stocks like NextEra Energy, Dominion Energy, and Brookfield Renewable are likely to be winners from the AI revolution, too. Before you buy stock in Dominion Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dominion Energy 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 $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor's total average return is 987% — 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 June 2, 2025 Reuben Gregg Brewer has positions in Brookfield Renewable Partners and Dominion Energy. The Motley Fool has positions in and recommends Microsoft and NextEra Energy. The Motley Fool recommends Brookfield Renewable, Brookfield Renewable Partners, and Dominion Energy and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. A 300% Increase in AI Data Center Demand Will Propel Growth for These 3 High-Yield Stocks was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
7 hours ago
- Business
- Globe and Mail
A 300% Increase in AI Data Center Demand Will Propel Growth for These 3 High-Yield Stocks
Artificial intelligence (AI) isn't technically a living thing, even though it can seem like one at times. The truth is, if you stop providing electricity to the hardware that supports any AI system, it ceases to operate. And that's the big story behind the growth opportunity ahead for NextEra Energy (NYSE: NEE), Dominion Energy (NYSE: D), and Brookfield Renewable (NYSE: BEP)(NYSE: BEPC). Each of these high-yield stocks offers investors a way to profit from growth in the AI space without having to try to pick an AI winner. NextEra Energy is growing its dividend 10% a year At its current share price, NextEra Energy has a 3.2% dividend yield. That compares to a 1.3% average yield for stocks in the S&P 500 index and the 2.9% yield of the average utility. You can find utilities with higher yields, but NextEra's is relatively attractive. The real story here, however, is dividend growth. Management has boosted NextEra's dividend at a 10% annualized clip over the past decade, and it expects to continue doing so at about that rate over the next couple of years. Its payout growth has been supported by the utility's steadily growing regulated business in Florida and, more to the point, its fast-growing clean energy business. The clean energy business sells power to other companies under long-term contracts. Large companies are increasingly looking for clean energy solutions as they expand, including the technology companies that are powering the AI revolution. And AI-related electricity demand in the United States is projected to increase by 300% over the next decade or so. Dividend growth investors looking for a way to tap into the AI sector while still maximizing yield will want to do a deep dive on NextEra Energy today. Dominion Energy is getting its business on the right track Dominion Energy is a turnaround story, and the stock could be appealing to investors who don't mind taking on just a little extra risk for a lot more yield. The regulated electric utility's yield at the current share price is around 4.7%, which is well above the industry norm. The risk here, however, is pretty low, given the company's government-granted monopolies in the regions it serves. One of those regions, Virginia, happens to be among the largest data center markets in the world. Add in a large offshore wind farm Dominion is building in the state, and it seems well-positioned to take advantage of the added demand that AI will create. The problem here is that the utility is currently focused on strengthening its balance sheet, which in part entails reducing its dividend payout ratio to bring it back in line with its peers. Basically, expect dividend growth at Dominion Energy to be on hold for at least a couple of years. However, investors who buy today will get a well-above-average yield, which seems ample compensation for income seekers as they await the stock's return to dividend growth in the future. Brookfield Renewable is a global play At the current share price, Brookfield Renewable Partners yields 6.2%. The company also has a roughly identical corporate share class with a lower 5% yield, a function of the higher demand for those shares. As the name implies, Brookfield Renewable invests in renewable power assets such as hydroelectric, solar, and wind, as well as battery storage and nuclear power. Unlike NextEra and Dominion, Brookfield Renewable operates on a global scale, allowing it to take advantage of AI and data center demand wherever it is popping up. For example, Brookfield Renewable has inked a deal with Microsoft to provide the tech giant with 10.5 gigawatts of new renewable power over the next decade. The purpose of the deal is specifically to support Microsoft's data center expansion. This shows what Brookfield Renewable's globally diversified portfolio can support. Investors should take a serious look at the high-yield opportunity here. AI is a growth driver for electricity demand Wall Street is excited about artificial intelligence and its rapid development, but many investors are focusing specifically on the direct AI plays. It's always tough to accurately pick long-term winners in fast-changing emerging markets. However, it is pretty clear that no matter which AI companies wind up the big winners, they will all need reliable access to growing supplies of electricity. And that means that high-yield stocks like NextEra Energy, Dominion Energy, and Brookfield Renewable are likely to be winners from the AI revolution, too. Should you invest $1,000 in Dominion Energy right now? Before you buy stock in Dominion Energy, 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 Dominion Energy 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 $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor 's total average return is987% — a market-crushing outperformance compared to171%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 2, 2025
Yahoo
17 hours ago
- Business
- Yahoo
Brookfield Renewable to Issue C$250 Million of Green Subordinated Hybrid Notes
The prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with this offering will be accessible through SEDAR+ within two business days. NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATES BROOKFIELD, News, June 03, 2025 (GLOBE NEWSWIRE) -- Brookfield Renewable (NYSE: BEP, BEPC; TSX: BEPC) ('Brookfield Renewable') today announced that it has agreed to issue C$250 million aggregate principal amount of Fixed-to-Fixed Reset Rate Subordinated Hybrid Notes due September 10, 2055 (the 'Hybrid Notes'). The Hybrid Notes will bear interest at an annual rate of 5.373% and reset every five years starting on September 10, 2030 at an annual rate equal to the five-year Government of Canada yield, plus a spread of 2.459%. Brookfield Renewable Partners ULC, a subsidiary of Brookfield Renewable, will be the issuer of the Hybrid Notes, which will be fully and unconditionally guaranteed by Brookfield Renewable and certain of its key holding subsidiaries. The Hybrid Notes will be issued pursuant to a base shelf prospectus dated September 8, 2023 and a related prospectus supplement to be dated June 4, 2025. The issue is expected to close on or about June 10, 2025 subject to customary closing conditions. The Hybrid Notes will represent Brookfield Renewable's seventeenth green labelled corporate securities issuance in North America and the sixth issuance under Brookfield Renewable's 2024 Green Financing Framework (the 'Green Financing Framework'). Brookfield Renewable intends to use the net proceeds from the sale of the Hybrid Notes to fund Eligible Investments (as defined in the Green Financing Framework), including to repay indebtedness incurred in respect thereof. The Green Financing Framework is available on Brookfield Renewable's website and described in the prospectus supplement in respect of the offering. The Hybrid Notes are being offered through a syndicate of underwriters led by Scotiabank, BMO Capital Markets, RBC Capital Markets, CIBC Capital Markets, National Bank Financial Markets and TD Securities, and including Desjardins, BNP Paribas, Mizuho Securities, MUFG, SMBC Nikko and iA Private Wealth Inc. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction, nor shall there be any offer or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement. The offer and sale of the securities has not been and will not be registered under the United States Securities Act of 1933, as amended (the 'U.S. Securities Act') or any state securities laws and may not be offered or sold in the United States or to United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. Access to the prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with the offering of the Hybrid Notes is provided in accordance with securities legislation relating to procedures for providing access to a prospectus supplement, a base shelf prospectus and any amendment thereto. The prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with the offering will be accessible within two business days at An electronic or paper copy of the prospectus supplement, the corresponding base shelf prospectus and any amendment to the documents may be obtained, without charge, from Scotiabank by email at or phone at 416-862-3290, BMO Capital Markets by email at DCMCADSyndicateDesk@ or phone at 416-359-6359 or RBC Capital Markets by email at torontosyndicate@ or phone at 416-842-6311. Brookfield Renewable Brookfield Renewable operates one of the world's largest publicly traded platforms for renewable power and sustainable solutions. Our renewable power portfolio consists of hydroelectric, wind, utility-scale solar and storage facilities and our sustainable solutions assets include our investment in a leading global nuclear services business and a portfolio of investments in carbon capture and storage capacity, agricultural renewable natural gas, materials recycling and eFuels manufacturing capacity, among others. Investors can access the portfolio either through Brookfield Renewable Partners L.P. (NYSE: BEP; TSX: a Bermuda-based limited partnership, or Brookfield Renewable Corporation (NYSE, TSX: BEPC), a Canadian corporation. Brookfield Renewable is the flagship listed renewable power and transition company of Brookfield Asset Management, a leading global alternative asset manager headquartered in New York, with over $1 trillion of assets under management. Contact information: Media: Investors: Simon Maine Alex Jackson +44 7398 909 278 +1 (416) 649-8196 This news release contains forward-looking statements and information within the meaning of Canadian securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements can be identified by the use of words such as 'will', 'expected', 'intend', or variations of such words and phrases. Forward-looking statements in this news release include statements regarding the closing, the terms and the use of proceeds of the offering of Hybrid Notes. Although Brookfield Renewable believes that such forward-looking statements and information are based upon reasonable assumptions and expectations, no assurance is given that such expectations will prove to have been correct. The reader should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Brookfield Renewable to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. Except as required by law, Brookfield Renewable does not undertake any obligation to publicly update or revise any forward-looking statements or information, whether written or oral, whether as a result of new information, future events or in to access your portfolio
Yahoo
3 days ago
- 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
3 days ago
- Business
- Yahoo
The Smartest High-Yield Stocks to Buy With $100 Right Now
UPS is a turnaround with a 6.7% yield and a price that's just at the cusp of $100. Brookfield Renewable Partners has a 6.5% yield and a long runway for growth. Enterprise Products Partners offers a 6.8% yield and steady distribution growth. 10 stocks we like better than United Parcel Service › You can buy some smart high-yield investments with as little as $100 if you take your time and act selectively. Right now, United Parcel Service (NYSE: UPS), Brookfield Renewable Partners (NYSE: BEP), and Enterprise Products Partners (NYSE: EPD) all have 6% yields or higher, and share prices that are below $100. Here's a look at why each one might be a good fit for your portfolio right now. United Parcel Service (or UPS) is one of the largest package delivery services in the world. During the coronavirus pandemic, investors bid up its shares because they extrapolated demand from people staying at home too far into the future. When the world opened back up, UPS fell short of Wall Street's lofty expectations. At that point, the company started to revamp its business, focusing on cost-cutting and increasing margins. When it finally looked like UPS had hit an inflection point, the company announced it was voluntarily reducing the business it was doing with Amazon, its largest customer. And shortly thereafter, the tariff upheaval started. The stock remains in Wall Street's doghouse even though it is making progress on its turnaround. In fact, the move away from Amazon is really a sign of strength, not weakness. UPS is basically trying to move away from a high-volume, low-margin customer. The 6.7% dividend yield is a sign that investors are worried about the future. But if you don't mind owning a turnaround stock, UPS looks like it has its business trending in the right direction again, even if the rebound is still a few years away. The lofty yield is good compensation for waiting. Brookfield Renewable Partners owns a portfolio of renewable energy assets, including in the hydroelectric, solar, wind, battery, and nuclear categories. Its portfolio is spread across the globe, with operations in North America, South America, Europe, and Asia. It is as close to a one-stop shop in the renewable power sector as you can find on Wall Street. And it has a lofty 6.5% distribution yield. Part of the reason Brookfield's yield is so high is that investors have lost interest in clean energy stocks. That's an opportunity for those who think long term. In the U.S. market, wind, solar, and storage generation are expected to increase by 300% between 2020 and 2050, according to the National Electrical Manufacturers Association. That's all part of a massive increase in the demand for electricity that is taking place, with demand growth over the next 20 years expected to be six times larger than over the last 20 years. This is a global phenomenon, and Brookfield Renewable Partners is well-positioned to benefit all along the way. Meanwhile, you can collect a huge yield while the slow and steady shift from dirtier carbon energy sources toward cleaner alternatives plays out. Two things beyond the lofty 6.8% yield make this master limited partnership (MLP) stand out. The first is the more important one because it is the business behind the yield. Enterprise Products Partners owns midstream energy assets, like pipelines, that help to move oil and natural gas around the world. It charges fees for the use of these assets so it generates reliable cash flows through the entire energy business cycle. Add in an investment-grade balance sheet and distribution coverage by a 1.7 multiple in 2024, and this is a rock-solid income stock. A lot would have to go wrong for a distribution cut to be on the table. In fact, given the $7.6 billion capital investment plan in the works, it is far more likely that investors will see more distribution increases in the future. And that brings up the second reason to like Enterprise: It has increased its distribution annually for 26 consecutive years and counting. This midstream business is boring and reliable, and that's exactly why you'll likely find it to be a smart high-yield investment to add to your portfolio right now. There is more than one way to add a high yield to your dividend portfolio. UPS is a turnaround story. Brookfield Renewable Partners is an option with a strong growth story behind it. And Enterprise is a boring high-yield business that even the most conservative of income investors could easily love. Before you buy stock in United Parcel Service, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and United Parcel Service 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 $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — 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 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Reuben Gregg Brewer has positions in Brookfield Renewable Partners. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Brookfield Renewable Partners, Enterprise Products Partners, and United Parcel Service. The Motley Fool has a disclosure policy. The Smartest High-Yield Stocks to Buy With $100 Right Now was originally published by The Motley Fool
