Investing for passive income is one of the most satisfying ways to build wealth. You put your money to work, and it sends you cash every quarter without any heavy lifting. For Canadians looking to generate steady returns while supporting sustainable energy, Brookfield Renewable Partners LP (TSX:BEP.UN) is one of the best options out there. With $20,000, you can start building an income stream and still sleep well at night, knowing your investment is in clean, growing infrastructure.
The stock
Brookfield Renewable isn’t just dabbling in green energy; it’s one of the largest publicly traded renewable power companies in the world. It owns and operates hydroelectric dams, wind farms, solar installations, and battery storage assets. These are spread across North America, South America, Europe, and parts of Asia, giving it a truly global footprint. That kind of reach is important when you’re investing for income because it spreads the risk and keeps cash flowing even when one region faces setbacks.
As of writing, BEP trades at around $33.23 per unit. It currently offers an annualized distribution of about $2.06 per unit, which works out to a yield of approximately 6.64%. So, here’s what investors could earn on an annual basis.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BEP.UN | $33.23 | 601 | $2.06 | $1,238.06 | Quarterly | $19,971.23 |
But what really makes Brookfield Renewable a standout is its consistency. The TSX stock has a long-term target of increasing its dividend by 5% to 9% each year, and it’s managed to hit or come close to that goal year after year. That means your passive income could be closer to $1,400 next year and even higher in the years after that.
A strong business
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 up 7% from the same quarter last year. FFO is a better measure of the company’s cash-generating ability than net income, especially for asset-heavy businesses like utilities. It tells you how much real money is available to pay investors.
The TSX stock did report a net loss of $197 million in the first quarter, but this was mostly due to non-cash depreciation and costs tied to acquisitions. Those kinds of expenses don’t affect the actual money Brookfield is generating or its ability to maintain and grow its dividend.
Brookfield Renewable is also actively growing its business. In recent months, it completed the acquisition of National Grid Renewables, expanding its footprint in U.S. solar and battery storage. It also finalized the US$6.5 billion privatization of Neoen, a major French renewables company. These deals don’t just make headlines but add future cash flows to the business and help it deliver on its growth promises.
Bottom line
Of course, no investment is without risk. Utility stocks like Brookfield can be sensitive to interest rates since rising rates make fixed-income alternatives like bonds more attractive by comparison. Currency swings from international operations can also affect results. But Brookfield has a strong management team and a solid balance sheet.
For investors looking to turn a lump sum into reliable income, Brookfield Renewable is a top-tier option. With $20,000 invested today, you could earn around $1,200 per year in passive income and potentially see that income grow each year as the company expands. It’s an investment in both your financial future and a greener world. And in the world of passive income, that’s a rare win-win.
