Brookfield Renewable Partners (TSX: BEP.UN) may slowly but surely be coming back onto investor radars once more. This occurred recently after an announcement saw updates to the company’s future investments. So, let’s get into this recent news, and whether now is the time that could see your future portfolio turn into millionaire status.
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What happened?
BEP stock recently updated its Green Financing Framework, which set out its new strategy to “invest in businesses and projects that support the transition to net zero.” The news was great for investors, as it provided far less risk with the potential for even more gains.
The company continues to operate as one of the world’s largest publicly traded companies for renewable power solutions. It invests in everything from hydroelectricity and wind power to nuclear and solar power. It also provides these solutions around the world, spanning from North America to Asia.
Yet the company’s recent move to start investing more and more in other companies provides it with a stake and increases in income without shelling out money for assets. This is a strong move that investors should definitely keep their eye on and even invest in for further growth.
I do mean further
BEP stock’s recent earnings also show that the company is slowly but surely getting back on the right path. Higher interest rates and inflation led to higher costs, and this hurt the company’s bottom line. However, it managed to achieve a strong quarter recently, which brought in more investor interest.
The stock closed its acquisitions of X-Elio and Deriva Energy and advanced its Westinghouse Electric acquisition. It also continues to aim for an acquisition of Origin Energy. Now that several of these acquisitions are closed, the company will be adding significant funds from operations (FFO) in the near future. This should deliver on its track record of over 10% in FFO per unit annual growth.
This is all on top of a successful quarter, with the company bringing its loss down from $136 million to just $64 million year over year. FFO also increased, up from $243 million in 2022 to $253 million this year. Its $1.29 per unit year-to-date FFO increased 7% year over year, providing some relief for long-term investors.
What now?
Analysts believe the stock should outperform in the fairly near future, especially with all these new acquisitions and growth on board. However, they remain cautious as interest rates remain high. Even so, this may give it a competitive advantage, with major access to capital that other companies cannot afford.
Therefore, the stock should continue to see growth in the near future with incredibly attractive merger and acquisition targets. With 150 gigawatts (GW) of development in the pipeline and 18 GW of renewable projects coming online in the next three years, it looks like a strong investment for future investors.
For now, investors can grab onto a dividend yield at 5.1% while the stock trades at 1.49 times sales, with shares already recovering, only down 3.6% in the last year. So, could BEP stock be a millionaire maker? It may take time, patience, and cash, but it certainly looks like we could see this happen in the next decade for some — especially if shares skyrocket back to all-time highs once more. And that’s looking more and more likely.
