Tuesday, May 11, 2021

Buying Brookfield Renewable Corporation Inc (BEPC) @ $38.67

 General Thesis:

With Democrats controlling the presidency and both houses it is quite clear that renewable energy will be getting a very big boost in the coming years.

The US Government is committed to promote and subsidise green energy initiatives across the board.

Brookfield energy partners are one of the best run companies in the field. 

- The company generated 10% more electricity than the previous year, which created a double digit increase in cash flow.

- Strong performance for all segments: Wind, Solar and Energy transition.

- Brookfield is benefiting from the global decarbonisation megatrend.

- The company makes over half of it's revenue from hydroelectric power.

- The company has a 27,000 Megawatt development pipeline - most of it focused on wind and solar. Current megawatt capacity is 21,000.

- Dividend yield above 3%

- Excellent management team. BEPC has been spun off from the Brookfield Energy group which has an impressive track record of smart and responsible capital allocation.

- Given the tail winds for the renewable energy industry, it's hard to see where this investment can go wrong.

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