Long-term contracts power their stable yields

Article Excerpt

With their clean, renewable power, these two companies hold a lot of conceptual appeal for investors. But just as important—especially in the wake of the coronavirus—they have stable cash flows from their diverse mix of hydroelectric, wind and solar power. That diversity, plus their long-term contracts, will let these utility firms continue to build up their operations and add to their distributions. BROOKFIELD RENEWABLE PARTNERS L.P. $73.61, is a buy. Through units in the partnership (Toronto symbol BEP.UN; Units outstanding: 309.1 million; Market cap: $23.8 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.1%; www.brookfieldrenewable.com) investors gain exposure to 219 hydroelectric generating stations, 104 wind farms and 4,969 solar-power facilities. In all, they produce over 19,317 megawatts of generating capacity. In the quarter ended September 30, 2020, much stronger power generation pushed up the company’s cash flow per unit by 28.2%, to $0.50 U.S. from $0.39 a year earlier. On July 30, 2020, the partnership handed out one share of Brookfield Renewable Corp…