Canada’s economy is giving investors plenty to think about. Real Gross Domestic Product (GDP) grew by just 0.4% in the first quarter of 2025. Inflation remains sticky, with core inflation holding above 3%, and the Bank of Canada recently chose to hold its policy rate steady at 2.75%.
Despite some optimism in markets, consumers are feeling stretched. According to a recent TD Bank survey, 73% of Canadians with mortgage renewals in the next year plan to reduce their spending to keep up with rising payments. Against this backdrop, many investors are looking for ways to generate steady income and gain exposure to sectors with long-term upside. One name that continues to attract attention is Brookfield Renewable Partners (TSX:BEP.UN).
Source: Getty Images
About Brookfield
Brookfield Renewable is one of the largest publicly traded renewable power platforms in the world. It has a diversified portfolio that includes hydroelectric, wind, solar, and energy storage facilities across North America, South America, Europe, and Asia. With more than US$126 billion in total assets under management, it is part of the broader Brookfield family of companies, offering scale and stability that smaller renewable firms can’t match.
The Canadian stock currently trades around $32 per unit, giving it a market cap of roughly $23 billion. It pays an annual distribution of $2.05 per unit, which works out to a yield of about 5.8% at writing. That’s well above the average for many other large-cap stocks in Canada and makes it attractive for income investors, especially those building a retirement-focused Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio. Right now, a $20,000 investment could bring in about $1,170.55 each year!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BEP.UN | $35 | 571 | $2.05 | $1,170.55 | Quarterly | $19,985 |
Into earnings
In its most recent quarterly results, Brookfield Renewable reported revenue of US$1.35 billion, up 8% from the year before. Funds from operations (FFO), the key measure used to support its dividend, rose to US$275 million, showing that the Canadian stock’s cash-generating ability remains intact. Brookfield Renewable continues to invest in new capacity while maintaining a conservative payout ratio to ensure its distribution remains sustainable.
The real appeal of Brookfield Renewable lies in its long-term positioning. It operates in a sector that is only growing in importance. As governments, corporations, and individuals around the world push to reduce carbon emissions, demand for renewable power is expected to climb. Brookfield is well-positioned to benefit from this shift, not just because of its size, but because of its ability to develop and acquire new assets in key markets.
Looking ahead
Another strength is the nature of its contracts. Many of Brookfield Renewable’s power-purchase agreements are long term and indexed to inflation. That helps preserve cash flow in real terms, which is important when inflation is running higher than usual. It also reduces exposure to market volatility, since much of its future revenue is locked in through predictable pricing.
Of course, no investment is risk-free. Brookfield Renewable operates in a capital-intensive industry. That means it regularly takes on debt to finance new projects. While the Canadian stock’s balance sheet is strong and its access to financing is better than most, higher interest rates do pose a risk. If borrowing costs stay elevated, it could weigh on future returns or limit the pace of expansion. Weather also matters, especially for hydroelectric generation, so unusually dry periods can impact performance in specific regions.
Bottom line
In today’s uncertain economic environment, where household budgets are stretched and interest rates remain a concern, Brookfield Renewable offers something rare: income, stability, and long-term relevance. It won’t deliver explosive growth, but it’s not meant to. This is a Canadian stock that pays you to wait while it builds the infrastructure of the future.
With so many Canadians rethinking how and where to invest, Brookfield Renewable Partners stands out as a dependable choice. It’s tied to the energy transition, backed by global assets, and focused on delivering consistent returns. For investors seeking a mix of income and sustainability, it might be one of the smartest long-term buys on the TSX right now.
