Every investor thinks they can handle market volatility – until markets actually become volatile. That’s usually when dependable dividend stocks start looking much more attractive because companies with stable businesses and reliable payouts could make it easier to stay invested even when uncertainty rises.
In this article, I’ll highlight an amazing dividend stock that I expect to continue benefiting from surging demand for renewable energy, making it one of the safest long-term holdings for Canadian income investors.
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A dividend-paying renewable energy giant built for stability
When it comes to staying invested through market ups and downs, businesses built around essential and growing industries tend to offer more peace of mind – and that’s exactly why Brookfield Renewable Partners (TSX:BEP.UN) looks attractive. It operates one of the world’s largest renewable power platforms, with assets spanning hydroelectric, wind, solar, and energy storage across multiple global markets.
That level of diversification matters. Instead of depending on one region or one type of renewable energy, Brookfield Renewable benefits from multiple revenue streams spread across different markets. This diversified structure helps it remain resilient even amid a challenging economic environment.
Its stock was hovering around $47 per share at the time of writing, giving it a market cap of $14.3 billion. Over the last year, BEP.UN stock has surged by more than 41%, reflecting growing investor confidence in the company’s long-term growth outlook and operational strength.
Strong financial growth continues
Brookfield Renewable recently delivered record first-quarter financial results that highlighted the hidden strength of its business model. For the quarter, the company reported funds from operations (FFO) of US$375 million, or US$0.55 per unit, representing a 19% year-over-year (YoY) improvement.
The company’s hydroelectric segment posted strong performance, as its FFO climbed 30% YoY due to stronger pricing and increased generation in Canada and Colombia. Meanwhile, its wind and solar operations posted combined FFO of US$245 million, marking growth of more than 60% from a year ago.
While Brookfield Renewable did post a net loss attributable to unitholders of US$229 million for the quarter, that figure was largely impacted by non-cash depreciation and other accounting expenses. That’s why FFO gives a better picture of a company’s actual operational performance, and those results remained very strong.
Besides earnings growth, Brookfield Renewable is also continuing to improve its financial base. In the latest quarter, the company completed nearly US$4 billion in financings, including the issuance of $500 million in 30-year notes at a fixed rate of 5.2%. These moves extend its debt maturity profile while maintaining its strong balance sheet.
Why long-term investors may want to buy this dividend stock
In addition to its current operations, Brookfield Renewable is also heavily focused on building future growth. The company recently announced the acquisition of Boralex, which will add a large renewable development pipeline to its portfolio and improve its presence in key geographical markets.
At the same time, it continues advancing efforts linked to new nuclear deployment at Westinghouse while scaling its capital recycling strategy. Notably, Brookfield Renewable expects to deliver roughly 10,000 megawatts of new projects annually by 2027, which is likely to support its cash flow growth for years to come.
More importantly, investors are also getting paid while waiting for its growth story to unfold as Brookfield Renewable currently offers a dividend yield of 4.5%, with reliable quarterly payouts.
