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Brookfield Renewable: 5.5% Hike Vs. The Deflating Bubble


  • Brookfield Renewable Partners has been deflating since the January 2021 bubble top.
  • The stock has been an income investor favorite and we have watched it for a long time as well.
  • We examine the Q4-2022 results and tell you how we read the large distribution hike.
  • Conservative Income Portfolio members get exclusive access to our real-world portfolio. See all our investments here »

Wind power


When we covered Brookfield Renewable Partners (NYSE:BEP) and its corporate counterpart, Brookfield Renewable Corporation (NYSE:BEPC), in October 2022, we felt that the valuations were finally coming into the right zone. We examined the Q3-2022 results and gave you

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This article was written by

Trapping Value profile picture
Trapping Value is a team of analysts with over 40 years of combined experience generating options income while also focusing on capital preservation. They run the investing group Conservative Income Portfolio in partnership with Preferred Stock Trader. The investing group features two income-generating portfolios and a bond ladder. Trapping Value provides Covered Calls, and Preferred Stock Trader covers Fixed Income. The Covered Calls Portfolio is designed to provide lower volatility income investing with a focus on capital preservation. The fixed income portfolio focuses on buying securities with high income potential and heavy undervaluation relative to comparatives. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BEP.UN:CA 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.

Long position is via covered calls.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (23)

taubs profile picture
would investors expect a secondary share offering to pay for Westinghouse deal?
Terra Brazilis profile picture
Anyone knows what is the dividend witholding tax for foreign investors? Canadian witholding should be 15%... but the sa page for BEPC and BIPC lists both as domiciled in the USA, which makes me worried about a 30% dividend witholding tax for foreign investors(15% is bad enough but 30% makes in univestable for me). Would love some clarification. My broker no longer has mlps available so I cannot buy BEP and BIP.
Steve Rasher profile picture
@Trapping Value Thanks for the article. I agree that $BEP is starting to get interesting again. I have been long since 2018, and I would be interested in adding after having trimmed when it was in the mid-$30s. If it hits $27, that would be a 5% yield given the recent distribution increase and might be a good price. Steve
Is Transalta Renewables still your preferred renewable play?
pgallop profile picture
@CKinvestor My question too, hope we'll see an answer.
@CKinvestor i’ve been buying it hand over fist
@pgallop sadly I don’t think he/she responds to the comment section anymore
@dividendhigh no K1 if you go with the BEPC ticker, but it trades at a small premium to the BEP ticker which is K1
jrhc profile picture
03 Feb. 2023
Thanks, good article. Long BEP Preferred PO...
Investor Dude profile picture
5% yield growing at 5-8%, track record and within a megatrend industry. Whats not to like about this? Looking to back up at 26 or below.
@Investor Dude what's not to like...owning it @$35.
What's not to love owning @ $18.35 ;)
hhdash profile picture
Thanks---Today RBC analyst Robert Kwan wrote that BIP was a " compelling opportunity" !

I own both BIP.un and BEP.un

Interested in following BIP to see how the purchase of IPL assets including the new polypropylene plant develops.
Very good article. I have made lots of money with bip and bep in the past. I think BEPC paid more than Westinghouse was worth went it was bought from another Brookfield unit. I sold at a small profit plus dividends. I am very suspicious about Brookfield's sales among it's divisions.
Financially Challenged profile picture
Re Westinghouse. I saw a quote from a global energy consultant.
“ if you are against fossil fuels AND nuclear you are FOR global poverty and human suffering wherever you intend to be or not.
The nuclear expertise they have acquired with Westinghouse could be very valuable as more and more countries wake up to this reality.
Despite Chernobyl and Fukushima nuclear is second only to solar in both safety and carbon footprint per Gigawatt. . And those nuclear technologies are the equivalent of 1995 internet by comparison with current state of the art.
@Financially Challenged I have no problem with nuclear. I have BIG problem when Brookfield Business unit buys Westinghouse then sells it to BEP for a big profit.
@jasonjones That is exactly right, BAM did the same with SunEdison's GLBL. BAM did not sell any asset to BEP without making large monies on it, which effectively means that BEP lost.
I trimmed my holdings during the bubble, probably should have trimmed more than I did, but it is a stock I intend to keep for a long time. Bought back in the good old days of 6% yields in 2016 and 17, been happy with it ever since. Agree that it is getting back to more reasonable levels now.

Thanks for the good article!
Finally falling to a reasonable price. I'll wait a little longer. Hoping to enter in low 20's.
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