On 19.06.2019 the shares were sold at price $34.26. Investment idea brought about 6.4% yield in 27 days
Brookfield Renewable Partners L.P.
Buy: market ($32.21)
Take profit: $34.5
Updated Stop-Loss $32.5 (14.06.19)
In a period of uncertainty caused by Trump’s current policy, we recommend adding a dividend position to your portfolio - Brookfield Renewable Partners L.P. shares. (NYSE: BEP).
Brookfield Renewable Partners L.P. owns and manages renewable energy assets. The company was founded in 2011 and headquartered in Toronto, Canada. As of the end of 2017, Brookfield Renewable owned more than 200 hydropower plants, 100 wind power plants, more than 550 solar installations, and four storage facilities.
The total volume of generating capacity owned by the company is about 7.25 megawatts, which is currently 8.2% more than a year earlier. 75% of power is produced by hydroelectric power plants. The remaining volume is also generated from such renewable sources as wind and solar stations.
Over the year, Brookfield Renewable Partners' net income increased from $8 million (Q1’18) to $43 million (Q1’19).
The company's FFO (funds from operations) grew from $193 million (Q1’18) to $227 million (Q1’19), showing an 18 percent increase over the year. FFO is a key indicator for companies that own generations. It reflects the cash flow from the main activity, which is the sale of electricity in our case. It is calculated as follows: depreciation is added to the net profit of the company and the profit from the sale of generating stations is subtracted.
In Q1 2019, a hydroelectric power station was put into operation in Brazil, with a capacity of 19 megawatts. In addition, 134 megawatts of renewable energy was launched worldwide.
Dividends from the activity for the 1st quarter of 2019 grew to $0.515 per share (or 1.6% of the share price on May 22) and will be paid on June 28, 2019, to shareholders on the register dated May 31, 2019.
Technical analysisThe share overcame a strong resistance formed by the multi-year level near the $32 borders, as well as a downward channel from the highs of 2017. In a positive scenario, the price may return to the range of $31.5- $32 and resume its movement to the intended target of $34.5 from there. We set SL at $30.5 in order to keep the risk/return ratio close to 2.
While maintaining the current rate of new generations launching, we expect the stock price to grow to $34.5. Taking into account the dividend payout, the yield potential will be 8%.
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