Invest in the Optimal Energy Shares with a $200 Budget Immediately
The demand for electricity is surging at an unprecedented pace. Factors like the electrification of everything and increased digitalization necessitate the installation of a massive amount of new electricity-generating capacity in the coming decades. Furthermore, the need for lower-carbon sources, such as renewable energy, becomes even more pressing due to ongoing climate change concerns.
Among companies poised to take advantage of this megatrend is Brookfield Renewable (BEPC 2.18%, BEP 0.82%). As a leading global renewable energy producer, its scale, expertise, and financial strength make it a key player in providing the world with more clean energy for the foreseeable future.
Brookfield Renewable boasts one of the world's largest clean power platforms, boasting a diversified portfolio of hydroelectric, wind (onshore and offshore), solar (utility-scale and distributed generation), energy storage, and sustainable solutions across five continents. The company owns and manages 37 gigawatts (GW) of operating capacity and sells this power to electricity utilities and large corporate power buyers, including tech giants like Amazon, Meta Platforms, Microsoft, and Alphabet's Google.
Brookfield Renewable additionally enjoys unparalleled access to capital and investment opportunities thanks to its relationship with Brookfield Corporation, the leading investment manager (BN -0.15%). This partnership opens doors to larger-scale investments and allows Brookfield Renewable to collaborate with other investors. The company has also launched several investment funds to invest in emerging sustainable solutions, such as carbon capture and storage, biofuel production, advanced recycling, and other promising opportunities.
Brookfield Renewable's development pipeline is bursting with opportunities, with 200 GW of additional capacity under development—65 GW of which is in advanced stages. This vast pipeline of projects has positioned the company as the partner of choice for large technology companies, including signing a landmark agreement with Microsoft last year. The technology company tapped Brookfield to develop over 10.5 GW of new renewable energy capacity between 2026 and 2030 to support its cloud and AI ambitions, nearly eight times larger than the previous record for a corporate power purchase agreement.
Brookfield Renewable's organic growth drivers aren't its only catalysts. Rising power prices, inflation indexation in existing power contracts, and capturing higher market prices when legacy agreements expire contribute to its growth. The company also provides ancillary services, offering battery backup storage to customers and boosting its cross-selling capabilities.
Throughout its history, Brookfield Renewable has displayed a knack for making accretive acquisitions. Over the past five years, the company and its partners have deployed over $30 billion into M&A, and it currently evaluates over $100 billion of potential opportunities to drive further growth. The company recently agreed to buy leading renewable developer Neoen in a $10 billion deal to expand its battery storage expertise and expand its presence in strategic markets (France, Australia, and the Nordics).
Brookfield Renewable's varied growth drivers have it on track for double-digit annual FFO growth for the foreseeable future. Boasting a dividend yield of over 5.5% and a plan to boost payouts by 5% to 9% annually in the long term, Brookfield Renewable could deliver mid-teens total annual returns. This combination of divisional growth and a sizable payout makes it an appealing energy stock investment option.
In light of the growing demand for renewable energy, Brookfield Renewable is leveraging its financial strength to invest in emerging sustainable solutions, such as carbon capture and storage, biofuel production, and advanced recycling. This strategic move allows the company to capitalize on various investment opportunities in the finance sector related to renewable energy.
Brookfield Renewable's impressive growth trajectory, driven by factors like organic growth, accretive acquisitions, and rising power prices, makes it an attractive option for investors seeking high returns in the money market, particularly in the renewable energy sector.
