It’s no secret that dividend stocks can be a simple and steady way to earn passive income. However, not all dividend stocks are created equal. If you’re looking for one that not only pays a strong yield but also taps into a global growth trend, Brookfield Renewable Partners (TSX:BEP.UN) deserves a close look. This is a dividend stock that not only pays investors well to wait, it also aims to be a leader in the transition to clean energy.
What you get
Let’s start with the basics. Brookfield Renewable owns and operates a diversified portfolio of renewable energy assets, including hydroelectric, wind, solar, and energy storage facilities. It operates across North America, South America, Europe, and Asia. That scale is important, especially in today’s energy transition, where demand for green electricity is rising. Brookfield has more than 25,000 megawatts of installed capacity and a pipeline of over 110,000 megawatts of development projects. That makes it one of the largest publicly traded renewable power platforms in the world.
What’s particularly appealing about Brookfield Renewable is its commitment to dividend growth. Over the past decade, the dividend stock has increased its distribution consistently, aiming for annual growth of 5% to 9%. That’s a big plus for investors who want to stay ahead of inflation or grow their income over time. Its long-term contracts help provide predictable cash flows to support these payouts.
In its most recent earnings report for the first quarter of 2025, Brookfield Renewable reported funds from operations (FFO) of $315 million, or $0.48 per unit. That’s a 15% increase from the same period last year. It also commissioned 1,300 megawatts of new projects in the quarter, with another 8,000 megawatts under construction. Those projects are expected to generate strong cash flows once they’re up and running, reinforcing the company’s ability to keep paying and growing its dividend.
How to make that $1,000
So, how can investors make $1,000 per year in dividend income? Let’s take a look at recent numbers and see what that investment might look like on the TSX today.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BEP.UN | $31.04 | 486 | $2.06 | $1,001.16 | Quarterly | $15,085.44 |
So, for about $15,000, investors could bring in a further $1,000 each year! Of course, no stock is perfect. Brookfield Renewable faced its share of headwinds, especially as interest rates have climbed. Higher rates can make its long-term infrastructure projects more expensive to finance and can lead some income-focused investors to favour other yield sources like bonds. But the dividend stock’s solid financials and global growth prospects help offset some of those concerns. And for long-term investors, a dip in price can actually be a chance to buy more shares at a higher yield.
From a Tax-Free Savings Account (TFSA) perspective, Brookfield Renewable is especially appealing. And what about all those dividends and capital gains? They’re tax-free inside a TFSA. If you’re building a portfolio aimed at long-term wealth and passive income, reinvesting those distributions into more shares can compound over time without the drag of taxes eating into your returns.
Bottom line
In the end, owning shares of Brookfield Renewable isn’t just about collecting a cheque every quarter. It’s about owning a piece of the future, one where clean, renewable energy becomes the dominant force powering our world. The dividend stock is built on stable contracts, global reach, and long-term growth plans that align with global decarbonization trends.
If your goal is to earn $1,000 a year in tax-free passive income, Brookfield Renewable might be a smart place to start. It offers a high yield, a history of growth, and a purpose that extends beyond profits. All you need is about $15,000 and a bit of patience. And if the stock price dips in the short term? That might just be your chance to own even more of a business built for the long haul.
