Analytical assessment of Brookfield Renewable Partners L.P. shares
Brookfield Renewable Partners L.P. has seen its stock value decline by approximately 15% this year, a contrast to the sharp rise in energy stocks in general. However, this decline is offset by strong fourth quarter results.
1. Fourth Quarter Results:$BEP+4.5% posted record funds from operations (FFO) of $1.1 billion, a 7% increase over the prior year. However, this performance was below the target of 10% year-over-year growth in FFO per share, due to the delayed closing of several transactions and more than half of the development projects coming on line.
2. Expectations for this year:$BEP+4.5% expects to fully utilize $2 billion in acquisition spending this year and earnings from recently completed development projects should yield positive results.
3. Potential for further growth: The company has a high number of development projects nearing completion, including the construction of a 24 gigawatt advanced-stage power plant that will add an additional $300 million to annual FFO once operational. The company plans to achieve double-digit growth in FFO per share by 2028.
4.Interesting Buying Opportunity: Investors can take advantage of this year's sell-off and buy $BEP+4.5% stock at a reduced price. Plus, they can lock in a higher dividend yield of 5.8% after a more than 5% dividend increase earlier this year.
Given these factors, Brookfield Renewable Partners L.P. could offer an attractive investment opportunity with high potential for future growth and dividend yield. However, investors should monitor whether the company will deliver the expected results in subsequent periods.
Definitely an interesting company for me. Are you shopping?