This 5%-Yielding Dividend Stock Continues to Add to Its Powerful Growth Profile

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$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]