BEP - Nice dividend and turnaround play
- Largest pure play energy stock I can find.
- Has assets in 4 continents and $59 billion in power assets.
Revenue generated today by power source
50% Hydro
24% Wind
15% Solar
11% Energy transition
Brookfield wishes to diversify away from Hydro and tap into other resources
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Dividend yield (3.124%)
Has been able to grow their dividend at a 6% compounded annual growth rate since the year 2000 to 2021.
"Well positioned to continue growing our distribution by 5-9% annually and deliver 12-15% total returns to unit holder over the long term." (Brookfield)
*Personal notes: I am not a dividend investor. It is not what I seek in general, rather I am looking for opportunity to generate capital gains. However, in an environment such as this one, where investments are risky with turbulent markets expected through 2022. I am looking for turnaround opportunities with potential to generate capital gains, and the dividend is the 'icing on the cake' so to speak.
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Annual revenue growth has been consistent since 2010.
4x since 2010.
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JP Morgan
In 2020 only about 5% of total electricity comes from renewable energy.
This is projected to grow to 60% by 2050, which is higher overall than oil ever was at its peak.
BEP has projects to increase wind power and renewable energy production planned out over a 50 year period.
The growth over 50 years will be phenomenal and BEP is set to capitalize on such growth.
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Valuations:
Looking at price to FFO
0.42 x 4 (annualized figure)
1.68 annual FFO
currently trading at 32.44
32.44/1.68 = 19.30
Price to FFO is just about reasonable valuation at this level. But the dividend and growth potential is exciting.
Analyst price projection at 41.88 as it stands
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I don't have any trade execution strategy at this point. I just think, whereas the opportunity to purchase more, at cheaper exists, its likely to produce a good outcome, I am excited to see what this does over a few years.
An accelerated return to average analyst rating or previous high would certainly get me out of the stock. Otherwise, perhaps its a good long holding.
- Has assets in 4 continents and $59 billion in power assets.
Revenue generated today by power source
50% Hydro
24% Wind
15% Solar
11% Energy transition
Brookfield wishes to diversify away from Hydro and tap into other resources
__________________________________________________________________________________
Dividend yield (3.124%)
Has been able to grow their dividend at a 6% compounded annual growth rate since the year 2000 to 2021.
"Well positioned to continue growing our distribution by 5-9% annually and deliver 12-15% total returns to unit holder over the long term." (Brookfield)
*Personal notes: I am not a dividend investor. It is not what I seek in general, rather I am looking for opportunity to generate capital gains. However, in an environment such as this one, where investments are risky with turbulent markets expected through 2022. I am looking for turnaround opportunities with potential to generate capital gains, and the dividend is the 'icing on the cake' so to speak.
__________________________________________________________________________________
Annual revenue growth has been consistent since 2010.
4x since 2010.
__________________________________________________________________________________
JP Morgan
In 2020 only about 5% of total electricity comes from renewable energy.
This is projected to grow to 60% by 2050, which is higher overall than oil ever was at its peak.
BEP has projects to increase wind power and renewable energy production planned out over a 50 year period.
The growth over 50 years will be phenomenal and BEP is set to capitalize on such growth.
__________________________________________________________________________________
Valuations:
Looking at price to FFO
0.42 x 4 (annualized figure)
1.68 annual FFO
currently trading at 32.44
32.44/1.68 = 19.30
Price to FFO is just about reasonable valuation at this level. But the dividend and growth potential is exciting.
Analyst price projection at 41.88 as it stands
__________________________________________________________________________________
I don't have any trade execution strategy at this point. I just think, whereas the opportunity to purchase more, at cheaper exists, its likely to produce a good outcome, I am excited to see what this does over a few years.
An accelerated return to average analyst rating or previous high would certainly get me out of the stock. Otherwise, perhaps its a good long holding.
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