Brookfield Renewable (BEP -1.13%) is an energy company that generates renewable energy backed by long-term power purchase agreements. Brookfield's business model provides it with steady cash flow to pay an attractive dividend yield (over 4.5% in mid-2026).
Brookfield Renewable has a globally diversified renewable energy portfolio. It's a world leader in hydroelectric power plants, with 8.5 GW of capacity and 43% of its funds from operations (FFO). It complements those facilities with rapidly expanding wind energy (16.9 GW, 22%), utility-scale solar (13.8 GW, 15%), distributed energy (e.g., rooftop solar), and energy storage platforms (8.1 GW, 11%). The company also has a growing sustainable solutions business (9%), which includes carbon capture and storage, biofuel production, nuclear services, and solar panel manufacturing.
The clean energy company believes solar could make up the majority of its production capacity within the next decade -- not because it doesn't see a bright future for wind or hydro, but because it sees greater opportunity in solar. Declining costs are making solar development projects increasingly lucrative. Utility-scale solar energy accounts for nearly 50% of the global development pipeline, which totals over 220 GW, while distributed energy accounts for 4% of the total.
Brookfield's solar-focused development project pipeline should add 4% to 6% to its annual FFO per share through 2031. Add that to its other organic growth drivers (inflation-linked rate increases and margin-enhancement activities) and acquisitions, and Brookfield believes it can grow FFO per share by more than 10% annually through 2031. That should support the company's plan to increase its high-yielding dividend by 5%-9% each year. Its dividend growth makes it one of the top renewable energy dividend stocks. Brookfield Renewable's overall combination of growth and income should enable it to generate attractive total returns in the coming years.
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