Brookfield Renewable Might Be The Perfect Inflation Hedge

WideAlpha
5.81K Followers

Summary

  • Inflation is currently running hot and investors should seek investments that can protect their capital, or ideally even benefit from the current environment.
  • Brookfield Renewable benefits in many ways from inflation, including a significant part of its revenues being indexed to inflation, its long-live assets, and most of its debt being fixed rate.
  • In addition to benefiting from inflation, an investment in Brookfield Renewable stock should provide real growth thanks to its massive development pipeline, and the push towards green energy in the word.

Water rushes through hydroelectric dam

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Inflation is spiraling out of control, exceeding 8% recently in the US. That complicates things for investors, as going to cash means accepting a guaranteed loss of purchasing power that is not negligible. Most of the rest of the investment

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of BEPC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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