AY - Brookfield Renewable: Switch To The Higher Yield Alternative
2024-05-10 11:00:00 ET
Summary
- Brookfield Renewable Partners delivered an 8% increase in FFO in Q1-2024 and announced a long-term deal with Microsoft for renewable energy.
- BEP's valuation is now trading at about 16X AFFO or CAFD multiples, which does not appear expensive.
- We tell you why the stock is still quite expensive in reality and tell you how a switch can give you 2% extra yield from a safer security.
On our last coverage of Brookfield Renewable Partners L.P. ( BEP ), ( BEPC ) we gave it another buy rating while noting that the returns were unlikely to be spectacular. The very high funds from operations (FFO) payout ratio as well as the lack of space on the cash available for distribution (CAFD) required a cautionary stance. Valuation was also so-so....
Brookfield Renewable: Switch To The Higher Yield Alternative