Core Viewpoint - The article highlights five high-quality dividend stocks that currently yield more than 5%, presenting them as attractive investment opportunities for generating a lucrative income stream amid a broader market decline of about 10% from its peaks [1]. Group 1: Brookfield Renewable - Brookfield Renewable offers a dividend yield of 5.2%, supported by stable cash flow from long-term contracts with utilities and corporate customers [2]. - The company has a significant backlog of development projects and a pipeline for acquisitions, forecasting cash flow per share growth of over 10% annually for the next decade, which supports a planned annual dividend increase of 5% to 9% [3]. Group 2: Enbridge - Enbridge provides a 6.3% dividend yield, with 98% of its earnings derived from stable cost-of-service and contracted assets [4]. - The company has met its financial guidance for 19 consecutive years and pays out 60% to 70% of its stable cash flow in dividends, allowing for substantial reinvestment in expansion projects [5]. - Enbridge anticipates a 3% annual growth in cash flow per share through 2026, increasing to 5% thereafter, which aligns with its dividend growth strategy [6]. Group 3: NNN REIT - NNN REIT currently yields 5.5%, generating stable cash flow from rental income through long-term net leases averaging 10 years [7]. - The REIT maintains a conservative payout ratio, enabling reinvestment in additional income-generating properties, and has increased its dividend for 35 consecutive years, marking a strong track record in the sector [8]. Group 4: T. Rowe Price - T. Rowe Price Group has a dividend yield of 5.5%, with income primarily from advisory fees, supported by an AUM of $1.6 trillion, reflecting an 11.2% increase [10]. - The company is expanding its exchange-traded funds and innovative retirement offerings, contributing to its growth and enabling a 39th consecutive annual dividend increase [11]. Group 5: Verizon - Verizon Communications offers a 6.4% dividend yield, generating significant cash flow from wireless and internet services, with $19.8 billion in free cash flow last year [12]. - The company is investing heavily in 5G and fiber networks, alongside a planned $20 billion acquisition of Frontier Communications, which are expected to drive revenue growth and support continued dividend increases, marking 18 years of consecutive raises [13]. Group 6: Summary of High-Quality Dividend Stocks - The five highlighted companies—Brookfield Renewable, Enbridge, NNN REIT, T. Rowe Price, and Verizon—each provide dividend yields above 5% and have a strong history of increasing their dividends, making them appealing options for investors seeking reliable income streams [14].

Core Viewpoint - Brookfield Renewable has announced the issuance of C$450 million in Series 19 Notes, which will mature on October 12, 2035, with an interest rate of 4.542% per annum [1][2]. Group 1: Issuance Details - The Notes will be issued by Brookfield Renewable Partners ULC, a subsidiary of Brookfield Renewable, and will be fully guaranteed by Brookfield Renewable and its key holding subsidiaries [2]. - The issuance is based on a base shelf prospectus dated September 8, 2023, and is expected to close around March 12, 2025, subject to customary closing conditions [2]. Group 2: Use of Proceeds - The net proceeds from the sale of the Notes will be used to fund Eligible Investments as defined in Brookfield Renewable's 2024 Green Financing Framework, including repayment of related indebtedness [3]. Group 3: Ratings and Underwriters - The Notes have received ratings of BBB+ from S&P Global Ratings, BBB (high) with a stable trend from DBRS Limited, and BBB+ from Fitch Ratings [4]. - The offering is being managed by a syndicate of agents led by CIBC Capital Markets, RBC Capital Markets, TD Securities, BMO Capital Markets, Scotiabank, and National Bank Financial Markets, among others [4]. Group 4: Company Overview - Brookfield Renewable operates one of the largest publicly traded platforms for renewable power, with a portfolio that includes hydroelectric, wind, utility-scale solar, and storage facilities [6]. - The company is part of Brookfield Asset Management, which manages over $1 trillion in assets [7].

Core Insights - Clean energy is the fastest-growing segment in the global energy market, despite being a modest contributor overall [1] - NextEra Energy and Brookfield Renewable are highlighted as attractive options for dividend investors in the clean energy sector [2] NextEra Energy - NextEra Energy operates primarily in the utility sector, with a strong foundation in Florida's regulated electricity market, benefiting from population growth and a monopoly in its operational regions [3] - The company is a leading generator of solar and wind power, distinguishing it from competitors and contributing to its rapid growth [4] - Over the past 20 years, NextEra Energy's earnings have grown at more than double the rate of its closest competitors, with a 10% annual dividend growth over the last decade [5][6] - The current dividend yield of 3.2% is above the utility average of 2.9%, making it an attractive option for income-focused investors [5] Brookfield Renewable - Brookfield Renewable focuses exclusively on clean energy, with investments in hydroelectric, solar, wind, battery storage, and nuclear power across multiple continents [8] - The partnership share class offers a distribution yield of 6.6%, while the corporate version provides a 5.3% yield, appealing to different types of investors [8] - The company aims to increase its disbursement by 5% to 9% annually, presenting a strong dividend growth narrative [9] - Unlike traditional utilities, Brookfield actively manages its portfolio, which may introduce variability but allows for strategic asset management [10][11] Clean Energy Transition - The long-term clean energy transition presents significant growth opportunities for both NextEra Energy and Brookfield Renewable, with a potential runway for decades [12] - Conservative investors may prefer NextEra for its utility foundation, while those willing to take on more risk may find Brookfield's higher yield and compelling story attractive [13]

Financial Reporting and Standards - Brookfield Renewable's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) [88]. - All dollar amounts are expressed in U.S. dollars unless otherwise indicated [89]. - The Management's Discussion and Analysis contains forward-looking information within the meaning of U.S. and Canadian securities laws [90]. - Certain comparative figures have been reclassified to conform to the current year's presentation [89]. - The company utilizes non-IFRS financial measures to explain its financial results [90]. - A reconciliation of the non-IFRS financial measures to the most comparable IFRS financial measures is available [90]. - The Management's Discussion and Analysis is provided as of February 28, 2025, for the year ended December 31, 2024 [86]. - Brookfield Renewable's financial statements are prepared in accordance with IFRS, requiring estimates and judgments related to assets, liabilities, revenues, and expenses [257]. Company Structure and Ownership - The ultimate parent of Brookfield Renewable is Brookfield Corporation, which includes Brookfield Asset Management [86]. - Holders of various units, including LP units and exchangeable shares, are collectively referred to as "Unitholders" [87]. Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $1.5 billion for the quarter [91]. - Revenues for 2024 reached $5,876 million, an increase of $838 million or 16.6% compared to 2023 [100]. - The company reported a net loss attributable to Unitholders of $464 million for the year ended December 31, 2024, compared to a loss of $100 million in 2023 [196]. - Funds From Operations totaled $1,217 million, or $1.83 per Unit, reflecting an increase from $1,095 million or $1.67 per Unit in the prior year [93]. - The company reported a significant increase in Adjusted EBITDA from $2,002 million in 2022 to $2,408 million in 2024, indicating a positive growth trend [162][164]. - In 2024, the company reported a net loss of $9 million compared to a net income of $616 million in 2023, and $138 million in 2022 [165]. Growth and Market Expansion - User data showed a growth of 20% in active users, totaling 10 million users by the end of the quarter [91]. - The company provided a future outlook with a revenue guidance of $1.6 billion for the next quarter, representing a 7% increase [91]. - The company is expanding its market presence in Asia, targeting a 25% increase in market share by the end of the fiscal year [91]. - The company deployed or committed to deploy $12.5 billion into growth initiatives, marking the largest investment year ever [94]. - The development pipeline now stands at approximately 200,000 MW, with a commissioning pace of nearly 7,000 MW per year, targeting a run rate of ~10,000 MW per annum by 2027 [95]. Capital Expenditures and Investments - Capital expenditures for the quarter were reported at $50 million, focusing on infrastructure improvements [91]. - The company announced a new research and development initiative with a budget of $10 million aimed at innovative product features [91]. - The company invested $3,733 million in the construction and development of renewable energy projects globally in 2024 [185]. - The company completed asset sales generating $2.8 billion, achieving average returns of approximately 25% IRR [97]. Liquidity and Financial Position - Liquidity position remains strong with available liquidity of $300 million [91]. - Available liquidity at year-end was $4,320 million, up from $4,121 million in 2023 [98]. - The company has $2.45 billion in committed revolving credit facilities available for investments and acquisitions [177]. - Cash flow from operating activities before changes totaled $1,562 million in 2024, an increase from $1,390 million in 2023 [179]. Operational Costs and Expenses - Direct operating costs rose to $2,580 million, an increase of $647 million compared to the prior year, primarily due to costs from newly acquired facilities [102]. - Interest expense increased to $1,988 million, reflecting a rise of $361 million compared to 2023, attributed to recent acquisitions and financing initiatives [103]. - Depreciation expenses for 2024 amounted to $2,010 million, while in 2023 it was $1,852 million, and in 2022 it was $1,583 million [162][163][164]. Renewable Energy Generation - Total renewable generation in 2024 was 30,947 GWh, up from 29,082 GWh in 2023, with total revenues increasing to $3,246 million from $2,826 million [140]. - Wind operations generated $484 million in Funds From Operations in 2024, an increase from $382 million in 2023, driven by newly acquired facilities and stronger generation [146]. - Utility-scale solar operations saw Funds From Operations rise to $349 million in 2024 from $261 million in 2023, benefiting from stronger generation and asset sales [147]. - Distributed energy & storage operations reported Funds From Operations of $186 million in 2024, up from $133 million in 2023, due to new facilities [148]. Risks and Challenges - The company faces risks from climate change affecting resource availability and electricity generation capacity [208]. - Future re-contracting of long-term contracts may not yield similar terms, impacting financial performance [214]. - The occurrence of dam failures could lead to significant capital expenditures and liabilities, impacting generating capacity and potentially resulting in new regulations [219]. - The company relies on third-party service providers for critical business functions, exposing it to risks from disruptions or cybersecurity threats [229]. Corporate Governance and Structure - Brookfield Corporation exercises substantial influence over Brookfield Renewable, impacting its management and operational decisions [253]. - The departure of key professionals from Brookfield could adversely affect the company's ability to achieve its objectives, as it relies on their skills and business contacts [255]. Future Outlook - The company plans to continue expanding its renewable energy portfolio and investing in new technologies to enhance operational efficiency and market presence [151]. - The company anticipates future demand growth for renewable energy in North America by 2028 to 2035, and in Colombia and Brazil by 2028 and 2030, respectively [273].

Financial Performance - Revenues for 2024 reached $5,876 million, an increase of 16.6% compared to $5,038 million in 2023[523] - Net loss attributable to Unitholders was $464 million, or $0.89 per LP unit, compared to a loss of $100 million, or $0.32 per LP unit in the previous year[524] - Proportionate Adjusted EBITDA increased to $2,408 million from $2,182 million, reflecting a growth of 10.4%[523] - Funds From Operations (FFO) increased to $1,217 million in 2024, up from $1,095 million in 2023, and $1,005 million in 2022, reflecting a growth of approximately 11% year-over-year[596] - The company reported a total net income of $616 million for 2023, compared to a net loss of $335 million in 2022[594] - In 2024, the company reported a net loss of $9 million compared to a net income of $616 million in 2023, and $138 million in 2022[596] Liquidity and Capitalization - Available liquidity at the end of 2024 was $4,320 million, up from $4,121 million in 2023[523] - As of December 31, 2024, the company had total capitalization of $78,616 million, with a debt-to-total capitalization ratio of 43%[603] - The company has $2.45 billion in committed revolving credit facilities available for investments and acquisitions[609] - Total cash flow provided by operating activities for 2024 was $1,562 million, an increase of 12.3% from $1,390 million in 2023[611] Investments and Growth Initiatives - The company deployed or committed to deploy $12.5 billion into growth initiatives, marking the largest investment year ever[525] - The development pipeline now stands at approximately 200,000 MW, with a commissioning pace of nearly 7,000 MW per year, targeting a run rate of ~10,000 MW by 2027[526] - The company invested $1,368 million in structured investments and equity accounted investments in 2024, including a 12% interest in a 3.5 GW offshore wind portfolio in the U.K.[616] - The company plans to acquire a diversified operating and development platform in the U.S. for approximately $950 million, with an enterprise value of $1,735 million[669] Asset Management - Total assets increased to $94,809 million in 2024 from $76,128 million in 2023, reflecting significant growth in property, plant, and equipment[542] - Property, plant and equipment increased to $73.5 billion as of December 31, 2024, up from $64.0 billion in 2023, representing a $9.5 billion increase[543] - The company completed asset sales generating $2.8 billion, achieving an average return of approximately 25% IRR[528] - Assets held for sale totaled $2,049 million, including a 25% interest in 2 GW of pumped storage facilities in the U.K. and a 1,004 MW portfolio of wind and solar assets in India[544] Operational Performance - The total generation for Brookfield Renewable in 2024 was 30,947 GWh, compared to 29,082 GWh in 2023, reflecting an increase in renewable energy output[571] - Wind operations generated Funds From Operations of $484 million in 2024, compared to $382 million in 2023, benefiting from newly acquired facilities[577] - Utility-scale solar operations reported Funds From Operations of $349 million in 2024, up from $261 million in 2023, aided by stronger generation and asset sales[578] - Adjusted EBITDA for hydroelectric operations was $902 million in 2024, down from $1,017 million in 2023, primarily due to lower generation[572] Debt and Interest Expenses - Interest expense increased to $1,988 million, up 22.2% from $1,627 million in 2023, due to acquisitions and financing initiatives[534] - The company’s total borrowings increased to $34,390 million in 2024 from $29,702 million in 2023[628] - The weighted-average interest rate for corporate borrowings in 2024 is 5.4%, with total borrowings of $14,549 million[605] Shareholder Returns - Incentive distributions declared during the year amounted to $128 million, an increase from $111 million in 2023[559] - The company increased distributions to $1.42 per LP unit in 2024, representing a 5.2% increase from $1.35 in 2023[613] - Brookfield Renewable repurchased 2,279,654 LP units in 2024 at a total cost of $52 million, compared to 1,856,044 units for $43 million in 2023[569] Market and Economic Outlook - The company expects power prices in Brazil and Colombia to rise due to the need for new supply to meet growing demand[598] - Brookfield Renewable anticipates future demand growth for renewable energy in North America by 2028 to 2035, in Colombia by 2030, and in Brazil by 2028[655] Risk Management - The company is focused on managing financial risks including electricity price, foreign currency, interest rate, credit, and liquidity risks[635] - Approximately 91% of the company's debt is non-recourse, indicating a strong focus on maintaining an investment-grade balance sheet[603] Corporate Structure and Reporting - Brookfield Renewable's operations are segmented into six categories: hydroelectric, wind, utility-scale solar, distributed energy and storage, sustainable solutions, and corporate[684] - The company recognizes that generation levels are affected by hydrology, wind, and irradiance conditions, but expects long-term averages to remain reliable indicators of performance[680]

Group 1: Dividend Stocks Overview - Investing in dividend stocks provides passive income, which can be beneficial regardless of market conditions [1] - The S&P 500 has a low yield of 1.2%, prompting investors to seek higher dividend opportunities beyond index funds [2] Group 2: United Parcel Service (UPS) - UPS plans to reduce its Amazon delivery volume by 50% by the second half of 2026, a move that is seen positively by investors [3][6] - The company aims to focus on higher-margin deliveries from small and medium-sized businesses and healthcare sectors [5] - UPS has a current dividend yield of 5.6%, making it an attractive option for yield-seeking investors [8] Group 3: Brookfield Renewable - Brookfield Renewable has seen a 15% decline in stock price due to investor concerns over the U.S. administration's stance on renewable energy [10] - The company manages over $100 billion in assets across 30 power markets in more than 20 countries, providing a stable dividend yield of 5.4% [11] - The majority of its funds from operations come from long-term power purchase agreements, ensuring predictable cash flows [11][12] Group 4: Conagra Brands - Conagra Brands is currently trading near a five-year low, facing demand pressures in the packaged food industry [13] - The company has revised its fiscal 2025 guidance, anticipating a 14.4% adjusted operating margin and a 2% decline in organic sales [14] - Despite challenges, Conagra continues to pay down debt and increase its dividend, resulting in its highest yield in a decade [16][17]

Core Insights - Brookfield Renewable is positioned as a leading global renewable energy producer with significant growth potential, driven by multiple catalysts that could lead to double-digit annual earnings-per-share growth for years to come [1] Acquisition and Growth Strategy - Brookfield Renewable and its partners have agreed to acquire National Grid's onshore renewable energy business for over $1.7 billion, enhancing its ability to increase its 5%-yielding dividend [2][3] - The acquisition includes a U.S. onshore renewable energy platform with 1.8 gigawatts (GW) of operating capacity and an additional 1.3 GW under construction, further solidifying Brookfield's market position [3] Recent Acquisitions - The company has made several strategic acquisitions, including Duke Energy's commercial U.S. renewable energy business for $2.8 billion in 2023, which added 5.9 GW of operating and under-construction assets [5] - In 2022, Brookfield agreed to invest up to $2 billion into Scout Clean Energy and Standard Solar, significantly scaling its U.S. onshore renewable energy capacity [6] Growth Projections - Brookfield Renewable has secured growth through 2029, with inflation escalations in power purchase agreements (PPAs) expected to add 2% to 3% to funds from operations (FFO) per share annually [7] - The company anticipates margin enhancements from higher market power prices as legacy PPAs expire, contributing an additional 2% to 4% to FFO per share each year [7] Development Pipeline - Brookfield has a substantial backlog of development projects, totaling 200 GW, with 65 GW in an advanced stage, aiming to increase its annual commissioning pace from 7 GW to 10 GW [8] - These development projects are projected to add another 4% to 6% to FFO per share each year [8] M&A Impact - The National Grid acquisition is expected to enhance Brookfield's growth rate by providing incremental income from operating assets while expanding its development project backlog [9] - The company believes that continued accretive acquisitions will support FFO per-share growth rates above 10% annually, facilitating a 5% to 9% annual increase in its dividend [9] Total Return Potential - Brookfield Renewable anticipates FFO growth exceeding 10% annually, bolstered by acquisitions like the National Grid deal, which will contribute to cash flow and growth profile [10] - The combination of income from dividends and growth rates positions Brookfield Renewable for powerful total returns in the coming years, making it an attractive long-term investment [11]

Group 1 - The market is currently influenced by expectations regarding the impact of the artificial intelligence revolution on the global economy over the coming years and decades [1] - Stocks such as Nvidia have been significantly priced based on these expectations [1] Group 2 - The article does not provide specific financial data or performance metrics related to companies or sectors [2][3]

Core Viewpoint - The energy sector offers opportunities for durable passive income through companies with stable business models that can mitigate commodity price volatility and support growing dividends [1] Company Summaries Enbridge - Enbridge has a 70-year history of paying dividends, marking its 30th consecutive year of increases, with a compound annual growth rate of 9% over the past three decades, including a 3.1% increase this year, yielding 5.9% currently [3][4] - Approximately 98% of Enbridge's earnings come from stable cost-of-service or contracted assets, with a dividend payout ratio of 60% to 70% of stable cash flow, supported by a strong investment-grade balance sheet [4][5] - Enbridge has a multibillion-dollar backlog of secured capital projects focused on lower carbon energy, expecting cash flow per share growth at a 3% compound annual rate through 2026 and around 5% per year thereafter, which will support dividend increases in the 3% to 5% range [5][6] Brookfield Renewable - Brookfield Renewable has achieved a 6% compound annual growth rate in dividends since 2001, with a 5% increase for 14 consecutive years, currently yielding 5.5% [7] - The company generates stable cash flow through long-term power purchase agreements (PPAs) with utilities, with cash flow growth of about 2% to 3% annually, and expects to capture higher market rates as existing PPAs expire [8][9] - Brookfield is developing 200 gigawatts of renewable energy projects, ramping up development capabilities from 7 GW to 10 GW annually by 2027, which should add 4% to 6% to cash flow per share each year [10] - The company has committed $12.5 billion to new businesses last year, with ample liquidity for future investments, and anticipates over 10% annual cash flow per share growth for the next decade, supporting dividend growth in the 5% to 9% range [11][12] Investment Outlook - Both Enbridge and Brookfield Renewable have demonstrated the durability of their dividends, with stable cash flow and conservative financial profiles, positioning them as ideal passive income stocks for long-term investment [13]

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional with degrees in Civil Engineering & Mathematics and a Master's in Engineering focused on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to engage and share insights [2]