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:

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. 

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.

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.

More on Investing

how to save money
Energy Stocks

3 No Brainer Oil Stocks to Buy With $1,000 Right Now

Canadian Natural Resources (TSX:CNQ) stock is looking good in November 2024.

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Is Enbridge Stock a Buy for its Dividend Yield?

Enbridge is up 24% in 2024. Are more gains on the way?

Read more »

A worker uses a laptop inside a restaurant.
Dividend Stocks

Here’s the Average RRSP Balance at Age 34 for Canadians

The RRSP is a perfect tool for creating retirement income, but only if you contribute! Here's how to catch up.

Read more »

Representation of deep learning neural networks and connectivity
Tech Stocks

Is Dell a Better AI Stock Than Nvidia?

Between Dell and Nvidia, which is a better buy right now?

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

1 Magnificent Canadian Dividend Stock Down 32% to Buy and Hold Forever

Despite growing debt and a significant payout ratio, is BCE still one of the best Canadian dividend stocks to buy…

Read more »

a person prepares to fight by taping their knuckles
Investing

Worried About Volatilty? Play Defence With 2 Stocks

Fortis (TSX:FTS) stock is one of many perfect volatility fighters to own for the long haul!

Read more »

investment research
Stock Market

CRA Money: Will You Claim These 3 Benefits for 2024?

Canadian investors should consider using the proceeds from multiple CRA tax breaks to invest in value TSX stocks.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Best Stock to Buy Right Now: Enbridge vs TC Energy?

Both Enbridge stock and TD Bank offer strong dividends as well as future growth. But what about ongoing issues?

Read more »