Here’s Why it’s Not Too Late to Buy Brookfield Renewable Stock

BEP (TSX:BEP.UN) stock shares surged on earnings, but part of it was due to even more growth on the way for this top energy stock.

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There’s been a ton of price movement from Brookfield Renewable Partners (TSX:BEP.UN) as of late. In fact, shares have climbed over 37% since 52-week lows. A lot of that movement came in the last few weeks, with the company announcing strong earnings as well as a strong future outlook.

But if you think that it’s now too late to pick up BEP stock, think again.

Microsoft power

During the company’s recent earnings, BEP stock announced a partnership with Microsoft. The announcement of a significant agreement with Microsoft to deliver over 10.5 gigawatts of additional renewable energy capacity is a major highlight. 

This agreement not only expands their longstanding partnership but also signifies the company’s ability to secure substantial contracts with leading global corporations. Such partnerships validate the company’s position as a key player in providing clean power solutions to support the growth of data centre operations, a sector with exponential demand for renewable energy. 

The recent agreement with Microsoft highlights the company’s ability to secure significant partnerships with leading global corporations. This partnership not only demonstrates the company’s credibility but also positions it for substantial growth in renewable energy capacity, providing a strong catalyst for future performance.

Stable portfolio

But it’s not just the future that investors should consider. BEP stock operates one of the world’s largest publicly traded platforms for renewable power and sustainable solutions. Its diversified portfolio of hydroelectric, wind, solar, and storage facilities across various geographic regions reduces risk and enhances resilience to market fluctuations.

This diversified portfolio has provided it with US$4.4 billion of available liquidity and a strong balance sheet, BEP stock is well-positioned to capitalize on growth opportunities and pursue strategic initiatives. This financial strength enhances the company’s ability to weather economic downturns and invest in value-enhancing projects.

Long-term potential

Beyond the Microsoft deal, there are even more reasons to consider the company as a long-term hold. The company’s strategic partnerships, robust growth initiatives, and strong financial position indicate its potential for sustained growth over the long term. The outlook for renewable energy remains positive, driven by increasing demand for clean energy solutions, which could continue to benefit BEP stock. 

In fact, BEP stock expects to bring on approximately 7,000 megawatts of new renewable capacity this year, indicating continued expansion and growth opportunities. This pipeline of projects could contribute to future revenue and earnings growth, providing support for the company’s valuation.

As well, as there is an accelerating global trend towards cloud computing, digitalization, and adoption of AI drive significant growth in demand for clean energy solutions. As a leading clean power provider, BEP stock is poised to benefit from these trends, which could support future share price appreciation.

Bottom line

All together, BEP stock is well positioned for short and long-term growth. In fact, the company targets a sustainable distribution with annual increases of 5-9%, providing potential income for investors. This commitment to shareholder returns may attract income-oriented investors seeking stable and growing dividends. And with a dividend yield of 5.32% and growth underway, now is certainly a great time to consider this energy stock.

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 and Microsoft. The Motley Fool recommends Brookfield Renewable Partners and Microsoft. The Motley Fool has a disclosure policy.

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