Brookfield Renewable Partners Stock: Buy, Sell, or Hold?

BEP stock (TSX:BEP.UN) now trades at half its share price back in 2021. So what should investors do with this stock moving forward?

| More on:
Utility, wind power

Image source: Getty Images

The world continues to try and create a better environment for our future children. Yet that future took a hit to the groin this week when electric vehicle companies provided poor production outlooks for the year.

This news comes as a struggling renewable energy sector continues to struggle further, with potentially no end in sight. So where does this leave strong, large companies such as Brookfield Renewable Partners LP (TSX:BEP.UN)?


If you’re looking at why it could be a good idea to buy Brookfield stock, there are certainly a lot of reasons to do so for future growth. There continues to be strong demand for renewable energy in the future, with BEP stock well positioned to benefit from this growing trend.

In fact, the company continues to create partnerships and acquisitions to drive organic and acquisition growth. And with record growth underway, it has been increasing its dividend regularly as well. That looks like a stable position as well, given that the company has strong and reliable cash flow from long-term contracts.

Add in that BEP stock also produced record results recently. The company reported a record US$1.1 billion in funds from operations (FFO) for the last year. The fourth quarter also saw a 9% increase in FFO year over year. The company went on to increase its dividend by 5% as well, with a share buyback plan in place.


You might be thinking, “All this great news, so why are shares half of where they were in 2021?” It’s a good question, and comes down to both macro and micro factors. BEP stock trades within the volatile renewable energy stock market. This area is susceptible to huge fluctuations, as we’ve seen. And that may not go away any time soon.

Sure, interest rates have made it hard for the company to expand. This comes down to taking out loans for more acquisitions and growth. But even after that, there is a lot of competition and a lot of regulatory hurdles to constantly jump over.

Plus, BEP stock may have projects in mind for the future, but these are all at risk. While diversified, these assets may prove worthless in the years to come should it focus too much on one area like wind power, and less on another like solar. Overall, it doesn’t look like a risk-free investment right now. Especially while trading down 13% in the last year alone.


Alright, but what if you already own BEP stock? Like *ahem* myself. Well, it really comes down to many of the points we’ve already gone over. There continues to be long-term demand for renewable energy. There continues to be expansion. It has a long history of growth, and has consistently delivered cash flow.

That goes right up to today with record results during the last quarter. And what’s more, those results include the long-term contracts I discussed. And while we might shift to one type of renewable energy over another, the diversification is key in the next decade at least. Whether it’s uranium or solar power, the company can provide it.

What’s more, the renewables asset owner and operator stands to make huge gains from being an incredibly large company, with plenty of cash to invest, and an experienced management team. But the best short-term reason? Its dividend yield at 6% as of writing. So don’t give up on BEP stock quite yet.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

More on Energy Stocks

edit Businessman using calculator next to laptop
Energy Stocks

If You’d Invested $5,000 in Brookfield Renewable Partners Stock in 2023, This Is How Much You Would Have Today

Here's how a $5,000 lump-sum investment in BEP.UN would have worked out from 2023 to present.

Read more »

Energy Stocks

Here Is Why Enbridge Is a No-Brainer Dividend Stock

For investors looking for a no-brainer dividend stock worth holding for the long term, here's why Enbridge (TSX:ENB) should be…

Read more »

Money growing in soil , Business success concept.
Energy Stocks

3 Canadian Energy Stocks Set for a Wave of Rising Dividends

Canadian energy companies are rewarding shareholders as they focus on sustainable financial performance.

Read more »

Solar panels and windmills
Top TSX Stocks

1 High-Yield Dividend Stock You Can Buy and Hold Forever

There are some stocks you can buy and hold forever. Here's one top pick that won't disappoint investors anytime soon.

Read more »

Oil pumps against sunset
Energy Stocks

Is it Too Late to Buy Enbridge Stock?

Besides its juicy and sustainable dividends, Enbridge’s improving long-term growth prospects make it a reliable stock to hold for the…

Read more »

oil and gas pipeline
Energy Stocks

Why TC Energy Stock Is Down 9% in a Month

TC Energy (TSX:TRP) stock has fallen by 9% in the last month, as it continues to divest assets to strengthen…

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

If You Like Cenovus Energy, Then You’ll Love These High-Yield Oil Stocks

Cenovus Energy is a standout performer in 2024, but two high-yield oil stocks could attract more income-focused investors.

Read more »

Man considering whether to sell or buy
Energy Stocks

Is Enbridge Stock a Buy, Sell, or Hold?

Enbridge now offers a dividend yield near 8%.

Read more »