Warren Buffett once said along the lines of “if you aren’t willing to own a stock for 10 years, you shouldn’t think about owning it for 10 minutes.” That principle is also useful when evaluating high-yield dividend stocks. A large yield may look attractive today, but long-term investors should focus on whether the underlying business can keep growing its cash flow and distribution for years.
For Canadian investors, Brookfield Renewable Partners L.P. (TSX:BEP.UN) jumps out as a top candidate for a high-yield stock to hold for a decade, if not longer.
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A high yield backed by essential infrastructure
iShares S&P/TSX 60 Index ETF currently has a distribution yield of roughly 2%, making a yield of over 4% notably attractive by Canadian large-cap standards. Brookfield Renewable’s current quarterly distribution is about US$0.39 per unit, or nearly US$1.57 annually. At recent trading levels, that translates into a yield of roughly 4.5%.
More importantly, this is a high yield supported by a growing business. Brookfield Renewable owns one of the world’s largest renewable power platforms, spanning hydroelectricity, wind, utility-scale solar, distributed energy and storage, as well as sustainable solutions. Its portfolio benefits from long-term contracted cash flows and rising electricity demand.
That last point could become increasingly important. Data centres, artificial intelligence, electrification, and industrial reshoring are all increasing the need for reliable power. Brookfield Renewable is positioned to benefit from these trends while maintaining exposure to multiple technologies and markets.
A long growth story
The strongest reason to hold BEP for 10 years, if not longer, is its record of growing cash flow while increasing distributions. From 2015 to 2025, funds from operations (FFO) per unit increased at an annualized rate of about 8%, while distributions grew at roughly 5% annually. Additionally, in this period, it increased its liquidity from US$1.2 billion to US$4.6 billion and improved its credit rating from BBB to BBB+.
Management is targeting more than 10% annual FFO-per-unit growth and 5%-9% annual distribution growth over the long term. It believes that the combination can support total returns of roughly 12%-15% annually, assuming investors buy the units at reasonable valuations.
Recent results support this growth story. In the second quarter of 2026, FFO rose 13% year over year to US$421 million, while FFO per unit increased 11% to US$0.62. Over the trailing 12 months, FFO per unit climbed 11%, reaching US$2.14.
Why I’d hold BEP for the long term
Brookfield Renewable combines three characteristics I want in a long-term income investment: an attractive starting yield, growing distributions, and exposure to a secular growth industry.
No stock is risk-free, and valuation always matters. Interest rates, project execution, financing costs, and renewable-energy regulation can affect its returns. It may be safer for investors to build a position gradually rather than buying a full position in one go.
The bottom line
For investors seeking a high-yield Canadian stock to buy and hold for a decade or longer, Brookfield Renewable offers a compelling combination of income, cash-flow growth, and exposure to rising global electricity demand. Its strong operating track record and ambitious growth targets make it a stock I’d be willing to hold through market cycles, particularly when its valuation offers a sufficiently attractive entry point.
