Is Brookfield Renewable Partners a Buy?

Let’s dive into whether Brookfield Renewable Partners (TSX:BEP.UN) is a buy, sell, or hold in this current macroeconomic environment.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Brookfield Renewable Partners (TSX:BEP.UN) is one of the top publicly traded renewable power stocks in the world. Recently, this company has been making headlines due to several developments, specifically its Green Financing framework and its share price movements. 

Created with Highcharts 11.4.3Brookfield Renewable Partners PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Over the past year, Brookfield Renewable’s stock price has been volatile, to put it nicely. While this stock has rebounded off of last year’s lows, there’s a lot of ground to make up for the company in order for it to breach its 2021 all-time highs. Accordingly, some concern may be felt among investors who believe the renewable energy story is now out of fashion.

With that said, let’s dive into whether Brookfield Renewable is worth considering at current discounted levels.

A business model built for the long term

Brookfield Renewable is a unique company in that its structure allows for some rather deep pockets to invest in its core renewable power projects. A subsidiary of Brookfield Asset Management, Brookfield Renewable has one of the best management teams in the industry, which has led to outsized investor interest.

Renewable power generation is becoming a much bigger issue from both a government and corporate standpoint. With its own solar, hydroelectric and wind power generation facilities around the world, Brookfield Renewable looks to be a leader in this high-growth sector. Other storage and distribution services complement the company’s core business and provide sustainable cash flow growth potential over the long term.

Green Financing framework becoming a key focal point

Recently, Brookfield Renewable released an update of its Green Financing framework in order to incorporate investment categories that are aligned with the company’s strategy. Focusing on projects and businesses looking to transition to zero emissions, Brookfield aims to become a leader in this high-growth industry.

The newly updated frameworks define parameters as per the current Green Loan Principles (2023) and Green Bond Principles (2021) to provide third-party assurance independently and also offer impact reporting and improve allocation. Moreover, the company has taken a big step toward getting into the low-carbon energy segment. To do this, Brookfield has made substantial investments in emerging renewable power-generation technologies.

The company is expected to benefit from the growth of green hydrogen-based companies, which utilize green energy to power its hydrogen projects. Brookfield Renewables engaged in a number of partnerships in the hydrogen and energy infrastructure sector to further this mission. These projects will be aimed at North America to start, but given the company’s global footprint, there’s plenty of growth potential elsewhere.

Bottom line

Brookfield Renewables provides investors with exposure to a diverse portfolio of renewable power. For those who believe solar, wind, hydroelectric, hydrogen, and other power sources will become critical in our future economy, this is a stock to consider.

Should you invest $1,000 in Brookfield Renewable Partners right now?

Before you buy stock in Brookfield Renewable Partners, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Brookfield Renewable Partners wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $18,750.10!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 35 percentage points since 2013*.

See the Top Stocks * Returns as of 1/22/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

If You Thought Apple and Microsoft Were Big, You Need to Read This.

The steel industry produced the world's first $1 billion company in 1901, and it wasn't until 117 years later that technology giant Apple became the first-ever company to reach a $1 trillion valuation.

But what if I told you artificial intelligence (AI) is about to accelerate the pace of value creation? AI has the potential to produce several trillion-dollar companies in the future, and The Motley Fool is watching one very closely right now.

Don't fumble this potential wealth-building opportunity by navigating it alone. The Motley Fool has a proven track record of picking revolutionary growth stocks early, from Netflix to Amazon, so become a premium member today.

See the 'AI Supercycle' Stock

More on Investing

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

Where to Invest Your TFSA Dollars for Monthly Income

Investing your TFSA dollars into these Canadian dividend stocks can help generate solid tax-free monthly passive income.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Tuesday, February 18

Overnight gains in crude oil, gold, and silver prices could lift the commodity-heavy main TSX index at the open today.

Read more »

Canadian dollars are printed
Dividend Stocks

Got $30,000? Transform a TFSA Into a This Cash-Gushing Machine

Put that TFSA to work with this one top-notch dividend stock.

Read more »

up arrow on wooden blocks
Dividend Stocks

2 High-Yield Dividend Stocks You Can Buy and Hold for a Decade

Restaurant Brands International (TSX:QSR) and another high-yield dividend payer are worth banking on for the long haul.

Read more »

hand stacks coins
Investing

Where Will Brookfield Corporation Stock Be in 10 Years?

Brookfield (TSX:BN) did well last decade. Will it thrive in the next one?

Read more »

think thought consider
Dividend Stocks

Restaurant Brands International: Buy, Sell, or Hold in 2025?

Investors should look more closely at QSR stock and potentially buy on the recent weakness.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Maximizing Returns with Your 2025 TFSA Contribution Room

The TFSA is a top tool for maximizing investment returns. Here are two stocks that could be a great buy…

Read more »

woman retiree on computer
Dividend Stocks

Should You Buy Telus Stock at $20?

Down 40% from all-time highs, Telus is a beaten-down TSX dividend stock that trades at a discount to consensus price…

Read more »