This Nearly 4%-Yielding Energy Stock Delivered Powerful Growth in 2025 With More to Come in 2026 and Beyond

Core Viewpoint - Brookfield Renewable is positioned for strong total return potential, driven by robust financial performance and growth prospects in the renewable energy sector [1][10]. Financial Performance - In the previous year, Brookfield Renewable generated $1.3 billion in funds from operations (FFO), equating to $2.01 per share, marking a 10% increase from 2024 [3]. - The legacy hydroelectric business contributed $607 million in FFO, a 19% year-over-year increase, supported by higher revenues and stronger generation in Canada and Colombia [4]. - The distributed energy, storage, and sustainable solutions platform generated $614 million in FFO, reflecting a nearly 90% year-over-year increase, aided by acquisitions and a resurgence in nuclear power demand [6]. Growth Drivers - The company expects to achieve over 10% annual FFO per share growth through at least 2030, which will support continued dividend growth of 5% to 9% annually [8]. - Brookfield delivered a record 8 gigawatts (GW) of new clean energy capacity last year, a 20% increase from the prior year, with plans to reach 10 GW of annual capacity additions by 2027 [9]. - The company signed a deal to supply Google with up to 3 GW of hydropower and is pursuing the development of over 1 GW of battery storage capacity [9]. Strategic Positioning - Brookfield is strategically positioned to capitalize on multi-decade trends such as reindustrialization, electrification, and data center expansion, which will drive demand for clean power [7]. - The company has a strong track record of delivering at least 5% annual dividend increases since its public market listing in 2011, with a planned 5% increase for 2026 [8][10].