Brookfield Renewable Corp's Dividend Analysis
An Insightful Look into Brookfield Renewable Corp's Upcoming Dividend and Financial Health
Brookfield Renewable Corp (NYSE:BEPC) recently announced a dividend of $0.34 per share, payable on 2024-03-28, with the ex-dividend date set for 2024-02-27. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Brookfield Renewable Corp's dividend performance and assess its sustainability.
What Does Brookfield Renewable Corp Do?
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Brookfield Renewable is a globally diversified, multitechnology owner and operator of clean energy assets. The company's portfolio consists of hydroelectric, wind, solar, and storage facilities in North America, South America, Europe, and Asia, and totals over 20 gigawatts of installed capacity. Brookfield Renewable invests in assets directly, as well as with institutional partners, joint venture partners, and through other arrangements. The company offers two separate listings for investors: Brookfield Renewable Partners LP and Brookfield Renewable Corporation.
A Glimpse at Brookfield Renewable Corp's Dividend History
Brookfield Renewable Corp has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Brookfield Renewable Corp's Dividend Yield and Growth
As of today, Brookfield Renewable Corp currently has a 12-month trailing dividend yield of 5.50% and a 12-month forward dividend yield of 5.50%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Brookfield Renewable Corp's annual dividend growth rate was 34.70%. Based on Brookfield Renewable Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Brookfield Renewable Corp stock as of today is approximately 5.50%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Brookfield Renewable Corp's dividend payout ratio is 0.00.
Brookfield Renewable Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Brookfield Renewable Corp's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 4 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Brookfield Renewable Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Brookfield Renewable Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Brookfield Renewable Corp's revenue has increased by approximately 8.90% per year on average, a rate that underperforms than approximately 56.16% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Brookfield Renewable Corp's earnings increased by approximately 51.70% per year on average, a rate that underperforms than approximately 14.79% of global competitors.
Next Steps
Considering Brookfield Renewable Corp's consistent dividend payments, robust dividend growth rate, and a payout ratio that indicates potential for continued reinvestment and growth, the company appears to be a compelling choice for dividend investors. With a solid profitability rank and a fair growth outlook, Brookfield Renewable Corp seems well-positioned to maintain its dividend payments. However, investors should also consider the company's revenue and earnings growth in relation to its global competitors. Looking ahead, will Brookfield Renewable Corp continue to provide a sustainable and growing dividend yield amidst the evolving landscape of the renewable energy sector? Value investors may find this an opportune moment to delve deeper into the company's financial health and future prospects. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
