Shares of Brookfield Renewable Partners LP. (NYSE:BEP) will begin trading ex-dividend in 6 days. To qualify for the dividend check of $0.49 per share, investors must have owned the shares prior to 27 February 2018, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. Should you diversify into Brookfield Renewable Partners and boost your portfolio income stream? Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. Check out our latest analysis for Brookfield Renewable Partners
How I analyze a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
- Does it pay an annual yield higher than 75% of dividend payers?
- Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
- Has the amount of dividend per share grown over the past?
- Is its earnings sufficient to payout dividend at the current rate?
- Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does Brookfield Renewable Partners fare?BEP currently pays out twice what it is earning, according to its trailing twelve-month data, which suggests that the dividend is not well-covered by earnings by any means. Furthermore, analysts are forecasting the payout ratio to remain at this high level going forward, leading to a future of uncertainty around the stability of BEP's dividend income. If there is one thing that you want to be reliable in your life, it's dividend stocks and their constant income stream. In the case of BEP it has increased its DPS from $1.25 to $2.45 in the past 10 years. It has also been paying out dividend consistently during this time, as you'd expect for a company increasing its dividend levels. This is an impressive feat, which makes BEP a true dividend rockstar. In terms of its peers, Brookfield Renewable Partners has a yield of 6.02%, which is high for Renewable Energy stocks.
Considering the dividend attributes we analyzed above, Brookfield Renewable Partners is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company's fundamentals and underlying business before making an investment decision. Below, I've compiled three essential factors you should further research:
- 1. Future Outlook: What are well-informed industry analysts predicting for BEP’s future growth? Take a look at our free research report of analyst consensus for BEP’s outlook.
- 2. Valuation: What is BEP worth today? Even if the stock is a cash cow, it's not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether BEP is currently mispriced by the market.
- 3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
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Simply Wall St has no position in any of the companies mentioned. This article is general in nature. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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