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
__________________________________________________________________________________
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.
- 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.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.