Key Points
There are plenty of reasons to buy stock in Brookfield Renewable (NYSE: BEPC). The Canadian company’s focus on green power energy solutions through hydroelectric, wind, solar, and electric storage gives it a combined capacity of 48,700 megawatts (MW).
The accelerating power consumption from artificial intelligence (AI) data centers, cloud computing, and industrial electrification has created growing demand for clean, large-scale electricity, and Brookfield Renewable is uniquely positioned to meet that need for large tech companies.
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The stock’s price has plummeted more than 20% so far this year, turning a great dividend stock into a smart deal for value-oriented investors. Here are three reasons to buy the stock this month before it bounces back.
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The company is racking up power purchase agreements
In the second quarter, the company reported new power purchase agreements (PPAs) for more than 2,600 MW of development projects. In the summer of 2025, the company signed a PPA with Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) to deliver up to 3,000 MW of hydroelectric capacity in the U.S.
It also has a PPA with Microsoft (NASDAQ: MSFT) that it signed in 2024 to provide up to 10.5 gigawatts (GW) of renewable energy power, using carbon-free generation capacity across North America and Europe between 2026 and 2030. The framework is structured to help Microsoft reach its target of matching 100% of its electricity consumption with zero-carbon energy. The deal is the largest corporate clean energy framework in history.
Brookfield Renewable is one of the few companies with the global scale needed to meet multi-GW corporate commitments.
The dividend is above 5% and is growing
Brookfield Renewable’s dividend yield, at its current share price, is around 5.12%. The company raised its quarterly dividend by 5% this year to $0.392, the sixth consecutive year it has increased its dividend.
The company’s dividend is a priority, and it has said its goal is to grow its dividend by 5% to 9% annually, delivering a total return of 12% to 15% annually. Over the past three years, its total return has been slightly more than 28%, and its dividend has grown by 16%.
The company’s funds from operations (FFO) payout ratio, as of the second quarter, was 63%, leaving room for continued increases.
The stock is priced for buying
Brookfield Renewable is trading at slightly more than one times trailing sales and one times forward sales. That’s a historically low level for the stock, which was trading at about five times trailing sales five years ago.
The company is healthy, and with another quarter like Q2, it should be enough to give the stock a spike. Brookfield Renewable reported a record $421 million in FFO in the quarter, or $0.62 per unit, up 13% and 11%, year over year, respectively. Revenue was $1.71 billion, up 1% over the same quarter a year ago.
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James Halley has positions in Alphabet, Brookfield Renewable, and Microsoft. The Motley Fool has positions in and recommends Alphabet and Microsoft. The Motley Fool recommends Brookfield Renewable. The Motley Fool has a disclosure policy.
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