There are times when I look at a stock chart and wonder why investors seem so disappointed with a company that’s still making progress. Maybe its latest earnings are improving, the company is investing in new projects, and the business has promising opportunities ahead. Yet the shares are trading noticeably below their recent high.
Does that automatically mean it’s a great buying opportunity?
Of course not. Sometimes the market is worried about something important, such as debt, rising expenses, or the cost of funding future growth. But I think those situations deserve a closer look rather than an immediate dismissal. In this article, I’ll discuss one beaten-down Canadian dividend stock that I believe could be worth buying now and holding for many years.
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An undervalued Canadian dividend stock to buy
If you’re looking for an undervalued Canadian dividend stock with solid long-term growth prospects and an attractive entry point, Brookfield Renewable Partners (TSX: BEP.UN) could be worth a closer look.
The company mainly operates one of the world’s largest publicly traded renewable energy platforms, with investments spanning hydroelectric, wind, solar, and energy storage facilities. Its business also includes nuclear energy and other sustainable solutions.
Despite gaining 15% so far in 2026, Brookfield Renewable’s stock currently trades at $42.67 per share, down roughly 20% from its 52-week high. At this price, the company has a market cap of $13 billion and offers an attractive 4.9% annualized dividend yield.
While the stock’s recent weakness might make some investors cautious, the company’s improving financial performance gives long-term investors good reasons to remain optimistic. Let’s take a closer look.
Its financials remain strong
Brookfield Renewable posted an 11.5% year-over-year (YoY) increase in its third-quarter revenue to US$1.8 billion. More importantly, its funds from operations (FFO), a key measure of operating performance, jumped nearly 15% YoY.
This growth was largely driven by strong contributions from its existing operations, newly developed projects, and gains from selling mature assets.
Brookfield’s hydroelectric business performed exceptionally well last quarter, with FFO surging nearly 80% YoY to US$214 million. Gains from asset sales in Maine and Colombia helped the company overcome weaker water conditions in some regions.
What else makes it look undervalued
In my opinion, Brookfield Renewable’s long-term expansion plans also make it look undervalued for investors willing to buy and hold this Canadian dividend stock for decades, especially after its recent share price weakness.
During the latest quarter, the renewable energy giant completed its US$1.9 billion acquisition of Boralex, strengthening its presence in key renewable power markets. Shortly after the quarter ended, it also finalized the US$3 billion acquisition of Aypa, a major North American battery storage platform.
These investments could help this Canadian dividend payer benefit from growing demand for renewable electricity and energy storage solutions in the coming years.
And that’s not all. Brookfield Renewable is also actively selling mature assets to raise capital for new growth opportunities. Since the end of the second quarter, it has signed or completed transactions expected to generate US$2.8 billion in proceeds.
With more than US$5 billion in available liquidity at the end of September, the company appears well-positioned to continue investing in its expanding renewable energy portfolio.
Overall, Brookfield Renewable’s growing FFO, attractive dividend yield, and ambitious expansion plans make it a compelling long-term investment despite the risks associated with its debt. In my view, its recent pullback could be a good opportunity to buy this magnificent Canadian dividend stock and hold it for decades.
