Core Viewpoint - The new administration in Washington, D.C. aims to lower energy prices quickly, but long-term investors should focus on companies that can thrive over decades rather than those benefiting from temporary government policies [1] Group 1: Company Analysis - Chevron has a diversified operating portfolio, with exposure to upstream, midstream, and downstream sectors, which helps mitigate the impact of falling energy prices [3][4] - Chevron maintains a strong balance sheet with a debt-to-equity ratio of 0.16x, allowing it to invest during tough times and pay reliable dividends, having increased its dividend annually for 37 years [4][5] - Enterprise Products Partners operates in the midstream sector, which is fee-driven rather than commodity-driven, making it less sensitive to energy price fluctuations and allowing it to maintain a steady volume [6][7] - Enterprise has an investment-grade-rated balance sheet and a distributable cash flow that covers its distribution by 1.7x, having increased its distribution annually for 26 consecutive years [7][8] - Brookfield Renewable focuses on renewable energy, with a growing demand for clean energy expected to continue for decades, offering a 6.5% yield for partner units and a 5.2% yield for corporate shares [9][10] - Brookfield Renewable reported a 10% increase in funds from operations in 2024 and has a robust pipeline of growth opportunities, benefiting from the current market for mature clean energy assets [10] Group 2: Investment Strategy - Long-term dividend investors should prioritize companies that can withstand market fluctuations and continue to pay dividends over the next few decades, with Chevron, Enterprise, and Brookfield Renewable presenting an attractive balance of income and risk [11]

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]