Canadians are very lucky, as many outstanding companies trade domestically. By acquiring 20 or so solid companies, I believe Canadians could be very well off over the next decade. However, some investors may be looking for that one company that could help round out their portfolios. If you asked me, I’d say that one stock could be Brookfield Renewable (TSX: BEP.UN). In this article, I’ll discuss exactly why.
What is Brookfield Renewable?
As its name suggests, Brookfield Renewable is a producer of renewable utilities. It operates a diversified portfolio of assets with a generation capacity of 25 gigawatts (GW). Although already ranking among the largest renewable utility producers in the world, Brookfield Renewable could be even larger over the coming years. Its development pipeline could add another 110 GW of generation capacity upon the completion of construction.
Why should you buy this stock?
In my opinion, Brookfield Renewable has qualities that could appeal to every investor. For example, if you’re looking for a stock with outstanding growth potential, then this could be the stock for you. I’ve already touched on the fact that Brookfield Renewable’s development pipeline provides an exceptional opportunity to massively expand its business. However, it doesn’t stop there.
Over the past year, Brookfield Renewable has managed to form a strategic partnership with Cameco. The goal of that partnership is to acquire Westinghouse, one of the largest nuclear services businesses in the world. By constructing new facilities and taking advantage of acquisition opportunities, Brookfield Renewable could greatly accelerate its growth over the coming years.
While that’s all good, not every investor may be interested in growth. Some could be looking for a stable company that offers a solid dividend. If that sounds like you, then don’t worry; Brookfield Renewable could still be the stock for you.
Listed as a Canadian Dividend Aristocrat, Brookfield Renewable has managed to increase its dividend distribution for more than a decade. Over that period, Brookfield Renewable’s dividend has grown at a compound annual growth rate (CAGR) of 6%. That helps keep dividend investors ahead of inflation. Brookfield Renewable has already announced its plans to continue raising its dividend in 2023. That’s in line with the company’s goal of raising its dividend at a rate of 5-9% on an annual basis.
What should interested investors take away from this stock?
If you’re interested in Brookfield Renewable, know that you would be investing in one of the world’s largest renewable utility producers. With a large and diversified portfolio, Brookfield Renewable is in an excellent position to continue leading its industry over the next decade.
Brookfield Renewable offers investors a unique mix of growth potential and a solid dividend. Because of that, it could appeal to a wider range of investors, helping drive interest in the company over the coming years. If I could only buy one stock today, it could very well be Brookfield Renewable.
