Brookfield Renewable: A 6.3% Geographically Diversified Dividend Yield As The U.S. Goes Nuclear

2025-05-27 09:34:03 ET

Summary

• Brookfield Renewable's global asset base has provided a hedge against efforts in the U.S. to radically reduce clean energy tax credits.
• The company offers a 6.3% dividend yield and has grown FFO per unit by an 8% compound annual growth rate since 2012.
• Renewable energy capacity is set to ramp up materially for BEP regardless of the "One Big Beautiful Bill".

Brookfield Renewable ( BEP ) ( BEPC ) is at an inflection point in the U.S. policy discourse towards clean energy. The zeitgeist built by the 2022 Inflation Reduction Act is set to come to an end if Trump's landmark tax bill, which passed the House by a single vote last week, passes the Senate. The bill would bring an end to clean energy tax credits designed to materially ramp up US solar and wind energy production capacity. The "One Big Beautiful Bill" is in effect a step change from the prior discourse that placed addressing anthropogenic climate change at the core of US policymaking. The IRA would have provided uncapped investment tax credits for wind, solar, and utility-scale battery energy storage systems, with total spending set to be at least 2x the initial $370 billion initially cited by the Congressional Budget Office’s estimate of uptake. However, the bill keeps in place the IRA's tax credits for nuclear energy. This came on the back of a May executive order aimed at quadrupling the US production of nuclear energy by easing the regulatory process on approvals for new nuclear reactors. ...

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