Title: Top Energy Stock Worth Investing $1,000 in Today
In the coming years, the world's electricity needs are set to skyrocket, driven by sectors like transportation electrification and AI. Experts anticipate data center power demand to swell 15-fold by 2030, accounting for nearly 10% of global consumption and up to 20% of U.S. power demand. Given the green goals of tech giants, renewable energy is poised to shine, making a company like Brookfield Renewable (BEPC) a top energy pick right now.
Unstoppable growth momentum
A global titan in clean energy, Brookfield Renewable currently boasts 37 GW of capacity across various markets. It sells power generated by hydro, wind, and solar facilities under long-term, fixed-rate power purchase agreements (PPAs) to utilities and large corporations. The company is on a record-breaking trajectory this year, aiming for a remarkable 7 GW of additional capacity, with roughly $90 million in annual funds from operations (FFO) to show for it.
An impressive 200 GW of projects sit in Brookfield's development pipeline, including 65 GW in advanced stages. With plans to develop 8.4 GW and 9.1 GW in 2023 and 2026, respectively, the company is gearing up to easily surpass 10 GW of annual additions by 2027 and beyond – reportedly in part due to its $10.5 GW development agreement with Microsoft for the 2026-2030 period.
Besides development, Brookfield's existing portfolio is slated to grow its FFO by 4-7% annually through inflation-linked rate increases and capturing higher market rates as PPAs expire. Add to that the company's penchant for accretive mergers and acquisitions, and Brookfield is primed to grow FFO per share annually by more than 10% through 2029 – and potentially beyond.
A generous income stream
Brookfield's portfolio is chock-full of stable revenue streams. The company generously pays out a substantial chunk of that income to shareholders in the form of dividends. Right now, it pays a quarterly dividend of $0.355, equating to 77% of its FFO over the first nine months of the current year. At a dividend yield of around 4.5%, Brookfield's stock is as cheap as $32 – offering a juicy yield that easily outpaces the S&P 500's paltry 1.2% yield.
Brookfield's dividend payments have grown at a 6% compound annual rate since 2001, with the promise of maintaining a 5-9% annual rise in the future. This staggering growth rate sustains Brookfield as a top-notch, high-yielding dividend stock pick.
Outstanding return potential
Brookfield Renewable expects a more-than-10% annual earnings growth rate, potentially leading to a share price doubling within around 7 years. Pair this growth with the company's robust income stream, promising steady increases each year, and you've got a formula for an impressive total return.
In conclusion, it's no brainer that Brookfield Renewable is the go-to energy stock to invest in. Its strong growth potential, impressive dividend yield, and strategic positioning in the expanding renewable energy market combine to create a winning investment opportunity.
Investors looking to diversify their portfolio and capitalize on the growing demand for renewable energy might consider investing in Brookfield Renewable. With its extensive development pipeline and strategic partnerships, the company aims to significantly increase its capacity and generate high returns. Furthermore, Brookfield Renewable consistently pays dividends to its shareholders, providing a reliable source of income that rivals the S&P 500's yield.
In light of Brookfield Renewable's projected annual earnings growth and stable income stream, individuals seeking long-term financial gains can consider this company as a sound investment choice in the finance and investing sectors.
