1 High-Powered Dividend Stock to Buy Like There's No Tomorrow

Core Viewpoint - Brookfield Renewable is positioned to generate substantial total returns in the coming years, supported by a strong dividend growth history and robust operational fundamentals [1][12]. Company Overview - Brookfield Renewable operates one of the largest publicly traded renewable energy platforms globally, with a capacity to produce 34 gigawatts (GW) of power from hydro, wind, solar, and other sustainable energy sources [3]. - The company has a diverse portfolio that includes biofuel production, recycling, carbon capture, and nuclear services, generating stable cash flow backed by long-term contracts [3]. Financial Performance - The company has a strong track record of dividend payments, with a 6% compound annual growth rate over the last 20 years and a consistent increase of at least 5% for 13 consecutive years [1][2]. - Brookfield Renewable expects its funds from operations (FFO) per share to grow by 10% or more annually through at least 2028, enabling it to raise dividends by 5% to 9% annually [2][12]. - The company paid out less than 75% of its stable cash flow in dividends during the first half of the year, providing a solid cushion for continued expansion [4]. Growth Drivers - Inflation-indexed contracts account for 70% of Brookfield's revenue, ensuring stable and rising cash flow, with an expected annual increase of 2% to 3% due to inflation [4]. - Additional growth is anticipated from margin enhancement activities, contributing an extra 2% to 4% to FFO per share each year without capital investment [6]. - Brookfield plans to invest $7 billion to $8 billion over the next five years in high-return development projects and acquisitions, with a pipeline of 200 GW in various stages of development [7]. Strategic Initiatives - The company signed a significant agreement to develop 10.5 GW of projects for Microsoft, marking the largest corporate power purchase agreement to date [8]. - Brookfield is also pursuing accretive acquisitions, including a majority stake in Neoen, which will add 8 GW of operating and under-construction assets and a pipeline of 20 GW [9]. - Recent investments in South Korea and expansion in India are expected to drive FFO growth above 10% annually [10]. Long-term Outlook - Brookfield Renewable anticipates a robust growth trajectory over the next two decades, driven by increasing demand for electricity from data centers and electric vehicles [11]. - The company expects to achieve an average annualized total return of 15% or more, supported by its strong dividend yield and growth potential [12].