Investing in renewable energy is investing for a greener future for the planet and your wallet. Not only does renewable energy reduce carbon emissions, but you can also earn high income from investing in it.
One renewable energy, dividend-growth stock which you should have on your radar is Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP). Its portfolio of assets are high quality and diversified.
Investing in quality real estate assets can also generate high income. H&R Real Estate Investment Trust (TSX:HR.UN) is a good choice. Its top tenants include big companies, such as BCE, TransCanada, Canadian Tire, and Nestle. Additionally, its rental income comes from 500 properties in four different asset classes.
Brookfield Renewable
Brookfield Renewable has about 260 power-generating facilities across 15 markets in North America, Brazil, Colombia, and Europe. The company has the capacity to generate 10,700 MW.
Brookfield Renewable has a core competency in hydroelectric generation, which makes up 88% of its portfolio. This type of generation is high quality and perpetual.
Since the company generates 90% of contracted cash flows, its cash flows remain stable across economic cycles. This supports a safe distribution. In fact, Brookfield Renewable has increased its distribution at an average annual rate of 6.5% since 2011.
The company currently yields 6.1%. Unitholders should be excited for another distribution hike of 5-9% by the end of next month.
H&R REIT
H&R REIT is the largest diversified REIT in Canada with interests in more than 500 properties.
It has about $14.5 billion of assets across its North American portfolio of office, industrial, retail, and residential properties.
Nearly 52% of H&R REIT’s rental income comes from its top 15 tenants, which have an average lease term to maturity of about 12 years. Additionally, 13 of these tenants have investment-grade S&P credit ratings.
H&R REIT has consistently maintained a high occupancy of 95% since 1997. The recent occupancy across its asset classes was at least 93%.
H&R REIT’s 2016 entrance into the U.S. multi-family market should help further increase the stability of its cash flows. Currently, it has 10 residential properties in Texas and Florida. It also has a 50% interest in a landmark luxury residential rental development in New York and a 31.7% non-managing interest in a 38.4-acre development site in California.
H&R REIT’s funds from operations payout ratio is about 73%. The REIT earns stable cash flows, offers a sustainable 6.1% yield, and has growth potential.
The takeaway
If you’re looking for income, you wouldn’t want to miss out on Brookfield Renewable and H&R REIT’s yields of more than 6%. Consider them today!
