New plants should keep dividends high

Article Excerpt

BROOKFIELD RENEWABLE PARTNERS L.P. $40.45 (Toronto symbol BEP.UN; Units outstanding: 296.3 million; Market cap: $12.5 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.3%; www.brookfieldrenewable.com) has interests in 217 hydroelectric generating stations, 77 wind farms and 537 solar power facilities. In all, it operates over 16,000 megawatts of generating capacity. In the quarter ended June 30, 2018, cash flow per unit rose 15.8%, to $0.66 U.S. from $0.57 a year earlier. The gains came from new plants as well as stronger power generation at all of Brookfield’s facilities. Last year, the partnership and a group of institutional investors paid $657 million U.S. for 100% of TerraForm Global; that firm owns and operates clean energy plants in emerging markets. Brookfield’s contribution of $202 million U.S. gives it a 31% share. The partners also acquired 51% of TerraForm Power (Nasdaq symbol TERP). Brookfield paid $203 million U.S. for a 16% stake in that firm. In February 2018, TerraForm Power agreed to pay $1.2 billion U.S. for 100%…