This Renewable Giant Could Power the Next Generation of Investors

Brookfield Renewable’s growing partnerships and reliable dividends make it a top renewable stock worth owning for the long term.

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Utility, wind power

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Key Points

  • Brookfield Renewable (TSX:BEP.UN) is a key player in global energy transformation, offering a 4.7% dividend yield and strong growth potential.
  • In the latest quarter, the company reported solid financial growth driven by performance across hydro and distributed energy segments.
  • With a massive project pipeline and a notable deal with Google, this renewable energy stock could see significant upside in the long run.

One great thing about renewable energy today is that it’s no longer just a distant bet on the future but has become key to the direction the world is going. As more nations chase clean energy targets and tech giants push to run on more and more sustainable power, renewable energy stocks are gaining ground. And beyond building renewable power, some of the largest companies in this sector are also building wealth for their loyal investors.

One such top stock quietly creating wealth for investors is Brookfield Renewable Partners (TSX:BEP.UN). Whether it’s hydro, solar, or batteries, this renewable giant is shaping up to be one of the strongest players in the global energy transformation story.

In this article, I’ll tell you why Brookfield Renewable stock could be a smart long-term bet for forward-looking investors who also love reliable dividend income.

A top renewable energy stock to buy on the TSX today

If you don’t know it already, Brookfield Renewable operates over 46,000 megawatts of installed capacity globally, including hydro, wind, utility-scale solar, distributed energy, and battery storage facilities.

At the time of writing, its stock trades at $43.82 per share with a market cap of $12.4 billion. Currently, it also offers an attractive annualized dividend yield of 4.7%, with quarterly payouts, making it even more appealing for income investors.

In the last nine months alone, this renewable energy stock has jumped nearly 47%. A combination of earnings recovery, large-scale deals, and increasing investor confidence in Brookfield Renewable’s ability to grow without overextending its balance sheet could be the main reason behind its recent rally.

Improving financials

Brookfield Renewable’s funds from operations (FFO) in the second quarter of 2025 climbed 10% YoY (year over year) to a record US$371 million. This growth was mainly driven by strong operating performance across its portfolio and stable, inflation-linked cash flows. Notably, its hydro segment alone delivered US$205 million in FFO, reflecting a solid 50% YoY jump as hydrology conditions improved in both the U.S. and Colombia.

Similarly, the company’s distributed energy and storage segment saw a boost last quarter with the help of continued strong results from its nuclear business, Westinghouse. Despite these positive factors, Brookfield Renewable’s adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) slightly declined from a year ago to US$700 million, largely due to the timing of its asset sales and higher operating costs. Nevertheless, the company still managed to expand its EBITDA margin from the previous quarter.

Why Brookfield Renewable is a great long-term pick

Many of Brookfield Renewable’s recent moves clearly suggest that its financial growth could accelerate in the coming years. In a major development, the company signed a long-term hydro framework agreement with Alphabet’s Google in July to supply up to 3,000 megawatts of hydro capacity. It’s a first-of-its-kind deal that highlighted its scale and credibility.

At the same time, this renewable giant’s development pipeline now sits at a massive 200,000 megawatts, including major offshore wind, solar, and battery storage projects across multiple continents.

These solid demand fundamentals, coupled with Brookfield Renewable’s ability to fund growth with US$4.7 billion in liquidity, make it an amazing renewable stock to buy and hold for the long term.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Alphabet and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

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