Here’s Why I Think Brookfield Renewable Stock Is 1 of the Best Deals on the TSX Today

Brookfield Renewable (TSX:BEP.UN) stock saw shares rise by about 35% since earnings, but even more is on the way.

| More on:

It’s been a crazy year of share price growth and shrinkage. Some companies have been doing so well, while others have continued to fall. But as investor sentiment has started to shift, a few stocks have made a roaring comeback. One of those is Brookfield Renewable Partners (TSX:BEP.UN). 

And yet, even after shares have surged in share price by about 35% in the last few months, there is even more reason to consider it as a strong deal on the TSX today.

Record earnings for the quarter

The start of the surge in share price came as Brookfield Renewable stock earned record first-quarter earnings. The renewable energy stock reported a significant increase in funds from operations (FFO), reaching US$296 million for the quarter, marking an 8% increase compared to the previous year. This robust financial performance signals to investors that the company is effectively executing its business plans and capitalizing on growth opportunities in the renewable energy sector.

Furthermore, Brookfield Renewable stock’s financial position remains robust, with US$4.4 billion of available liquidity, enabling it to deploy significant capital into growth opportunities. The company successfully executed nearly $6 billion in financings during the quarter, demonstrating access to capital markets and investor confidence in its business strategy.

This all helped to support Brookfield Renewable stock’s decisions to increase its dividend. The company declared a quarterly distribution, signalling its commitment to returning value to shareholders. This distribution, along with the company’s target of sustainable distribution increases averaging 5-9% annually, enhances investor confidence in the company’s long-term prospects and income potential.

Landmark deal

However, the strong performance wasn’t even the highlight. Instead, investors can look forward to more coming from Brookfield Renewable stock. The company highlighted its progress in advancing development activities during the quarter, aiming to bring on approximately 7,000 megawatts of new renewable capacity within the year. 

Additionally, asset recycling activities are expected to generate US$3 billion of proceeds, further strengthening the company’s financial position and providing capital for future growth initiatives. But the best was yet to come. 

Brookfield Renewable stock announced a groundbreaking agreement with Microsoft, which expands on their longstanding partnership. This agreement involves delivering over 10.5 gigawatts of additional renewable energy capacity to support Microsoft’s data centre growth and artificial intelligence-powered cloud services business. Such a significant partnership not only validates Brookfield Renewable stock’s capabilities but also opens up substantial revenue opportunities in the future.

Bottom line

Brookfield Renewable stock may have been climbing recently, but it could only be the beginning. The renewable energy stock is proving that it can create earnings even during a difficult time. What’s more, companies as large as Microsoft are supporting even more growth. So, if you’re looking for a company that’s just getting started in terms of growth, then Brookfield Renewable stock is certainly one to consider — especially with a dividend yield of 5.1% now on board.

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.

More on Energy Stocks

how to save money
Energy Stocks

The Ultimate Energy Stock to Buy With $1,000 Right Now

A top-performing small-cap stock in the energy sector is a screaming buy right now.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Top Energy Sector Stocks to Invest in for 2025

Dodge U.S. tariffs! Top Canadian energy stocks including Suncor (TSX:SU) stock offer growing dividends and potential growth in 2025

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Trump Tariffs: Are Canadian Energy Stocks Still a Safe Haven for Investors?

Trump tariffs have put Canadian energy stocks in the limelight. These stocks have outperformed post-pandemic. Can they continue doing so?

Read more »

Pumpjack in Alberta Canada
Energy Stocks

Canadian Natural Resources: Buy, Sell, or Hold in 2025?

Here's my take when it comes to CNQ this year.

Read more »

happy woman throws cash
Energy Stocks

Best Stock to Buy Right Now: Brookfield Renewable vs Canadian Solar?

Clean energy stocks such as Brookfield Renewable offer significant upside potential for long-term shareholders in 2025.

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Invest $16,650 in this TSX Stocks for $1,000 in Passive Income

This TSX stock offers a 6% yield and will enable you to earn $1,000 in stress-free passive income with a…

Read more »

Make a choice, path to success, sign
Energy Stocks

2 Sectors That Could Take a Big Hit in a U.S.-Canada Trade War

The potential of a U.S.-Canada trade war has sent shockwaves in the TSX. A few sectors could face the biggest…

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Dividend Investors: Top Canadian Energy Stocks for February

Are Canadian energy stocks worth considering amid the threat of import tariffs from the United States? Let's find the answer.

Read more »