TERP - This Renewable Energy Stock Has Plenty of Power to Keep Growing its High-Yielding Payout
Brookfield Renewable Partners (NYSE: BEP) has an excellent track record of rewarding its investors. Since its formation in 1999, the renewable energy producer has grown its distribution at a 6% compound annual rate, which includes a 5% increase this year. That upward trend appears poised to continue given the amount of growth the company has up ahead, which was one of the central themes on its fourth quarter conference call.
Brookfield Renewable was very active strategically last year. CEO Sachin Shah stated on the call that "we invested $2 billion, or $550 million net to BEP, of equity across 9 transactions, including doubling the size of our Asian and distributed generation businesses, adding a leading global solar developer, and investing in a hydro portfolio in Canada."
These new additions helped power a 13% year over year increase in the company's funds from operations (FFO) on a per-unit basis. That allowed it to "continue our track record of strong FFO per unit growth at a 10% annual growth rate since our strategic combination with Brookfield's renewable assets in 2011," according to Shah.