The stock market is under heavy pressure, with the S&P 500 Index ($SPX), Dow Jones Industrial Average ($DOWI), and Nasdaq Composite Index ($NASX) seeing sharp declines. 

One of the main reasons for this slowdown is the trade war initiated by President Donald Trump. His administration imposed steep tariffs on imports from Canada, Mexico, and China. In response, these countries have announced retaliatory measures, creating a tit-for-tat trade war that has unsettled global markets and raised concerns about prolonged economic instability.

During times like these, dividend-paying stocks in stable industries become attractive options. Brookfield Renewable Partners (BEP) is a prime candidate in this regard. Operating in the renewable energy sector, which is less affected by economic cycles, BEP offers both stability and growth potential. Let’s explore why BEP is well-liked by analysts and how it can provide stability in uncertain market conditions.

About Brookfield Renewable Partners Stock 

Brookfield Renewable Partners (BEP) operates a diverse portfolio of hydroelectric, wind, solar, and storage facilities. Its dividend policy is quite appealing, offering a forward dividend of $1.49 with a yield of 6.4%. This yield is significantly higher than the utilities sector average of 3.75%. 

BEP stock is currently trading near $23 with a year-to-date gain of 2%.

BEP’s recent financial performance has been strong, as seen in its 2024 earnings report. For the full year, the company generated record funds from operations (FFO) of $1.2 billion or $1.83 per unit, marking a 10% increase on a per-unit basis from the previous year. The fourth quarter results were particularly robust, with FFO increasing by 21% year-over-year to $304 million. These figures demonstrate BEP’s ability to generate consistent cash flows, which is crucial for maintaining its dividend payments.

While BEP reported a net loss attributable to unitholders of $464 million for the full year 2024, this figure includes non-cash depreciation and other expenses. 

Moreover, BEP’s liquidity position is exceptionally strong, boasting cash and cash equivalents of $3.1 billion and available liquidity exceeding $4.3 billion as of Dec. 31, 2024. This provides it with significant financial flexibility to aggressively pursue growth opportunities.

Brookfield’s Growth Catalysts

Brookfield has recently taken significant steps to strengthen its position in the renewable energy sector. The company announced plans to issue 450 million CAD in green bonds, set to mature on October 12, 2035, with an annual interest rate of 4.542%. This move highlights BEP’s commitment to sustainable growth and long-term financing.

Additionally, BEP secured a 10-year power purchase agreement (PPA) with the Tennessee Valley Authority (TVA) for 377 MW of hydroelectric power from Smoky Mountain Hydro facilities. This agreement provides BEP with a stable revenue stream while supporting TVA’s clean energy goals. Long-term contracts like this are vital for ensuring financial stability and continued growth in the renewable energy space.

Analyst Opinions on BEP Stock 

Brookfield Renewable Partners has the backing of analysts. Although estimates for current quarter earnings reflect an 8.7% drop year-over-year, estimates for the next quarter call for 35.7% growth. By 2026, an estimated loss per share of $0.86 would be better than 2024 and 2025 estimated figures. 

CEO Connor Teskey has expressed optimism about the company’s future. He highlighted the growing demand for clean power, driven by corporate customers, data center expansion, and broader electrification trends. Teskey emphasized BEP’s strengths, including its large-scale pipeline, global capabilities, and substantial liquidity, which position it well to meet increasing demand for renewable energy.

The analyst community’s enthusiasm for BEP is palpable, with a “Strong Buy” consensus rating. The average price target of $30.35 implies upside potential of 30% from the current price.

The Bottom Line

Brookfield Renewable Partners looks like a solid bet even if markets get rocky. With its strong dividend yield, robust growth pipeline, and “Strong Buy” rating from analysts, BEP stands out in the renewable energy sector. Its diverse portfolio and strategic moves in clean power position it well for the long haul. So if things go south in the stock market, BEP could be your go-to for steady returns.