Right now, investors should be on the hunt. There is a sea of stocks on the TSX today that are down, hitting perhaps even 52-week lows. But that’s not what you should be concerned about. Don’t think too much about the past or even the immediate future. What you want is longevity and income while you wait. That’s why today, I’m recommending Brookfield Renewable Partners (TSX: BEP.UN) as a top stock to consider.
First, the past
Let’s go over the past, present and future when considering BEP stock on the TSX today. While the company has been around for a few decades, entering the renewable energy sector at the turn of the millennium, this was merely an offshoot of its parent company — one that’s been invested in renewable energy since the end of the 19th century.
In the last few decades, however, the company has expanded at an incredible rate. BEP stock now has operations all over the world, operating in every type of renewable energy asset. From solar and wind to uranium and renewable natural gas, it has it all. And it’s all this diversification that leads to a current strong performance.
On to the present
So, what’s been going on in recent history that investors need to be aware of? BEP stock saw a climb after President Joe Biden came to office and stated there would be a large investment in renewable energy. This caused BEP stock and other clean energy companies to soar in share price. But then, as fears of a potential downturn arose, shares started to drop.
While BEP stock has recovered from 52-week lows, there could be more trouble in the immediate future. Rising interest rates, inflation, and supply-chain demands for its assets have proven to be troublesome for the stock. Yet these are short-term issues that will eventually step aside. And that’s what leads to the true value of this stock.
Not only has Brookfield stock been doing well, but it had a record year in 2022. That’s despite seeing shares drop to incredible lows. Revenue reached an all-time high, and the future looks bright as well. It entered a partnership to acquire Westinghouse, one of the world’s largest nuclear services businesses. It also just announced an acquisition to acquire Origin Energy. This is Australia’s largest integrated power generator and energy retailer, currently holding a 24% market share of the national electricity market.
The future is bright
This alone caused shares to climb from 52-week lows for BEP stock. It now trades at about $41 on the TSX today and at a valuable 1.7 times book value. What’s more, it offers a dividend yield for those wanting income while they wait for the stock to rebound; the yield is currently at 4.32%.
After record results came in, Brookfield made these numerous announcements about partnerships and acquisitions that show 2023 looks like it will be just as strong, if not stronger. So, not only are we likely to see this stock continuing climbing past that 23%, but it could very well hit all-time highs very soon.
