Dividend raise: Brookfield Renewable Partner (+5,3%)

My 3rd dividend raise of 2020! A few days ago Brookfields Renewable Partners (BEP) announced a raise in their quarterly dividend from $0,515 to $0,5425. For a stock that is yielding 4,7% this is a solid increase of more than 5%. This raise adds a roughly € 2,50 to my annual dividend income! It's actually my first dividend raise from BEP.

So far this is my third dividend raise. Last year I received 21 dividend raises in 2019. These raises combined have added around € 60 to my forward annual dividend income. In 2020 my dividend income has increased by over € 4 already. Of course I expect more raises during the rest of 2020. I'll keep you updated!

Brookfield Renewable Partners: Have Your Cake And Eat It Too

Brookfield Renewable Partners L.P. (BEP) is a globally diversified, multitechnology, owner and operator of renewable power assets. In my last article I wrote about ESG investing and whether Ecolab could be an addition to my portfolio. In this article I’ll take a dive into Brookfield Renewable Partners.

Business model
The business model of BEP is actually rather simple. They acquire and develop renewable power assets and businesses (mainly hydro, solar and wind), finance these assets with a mix of debt (investment grade basis) and equity and optimize cash flow and value utilizing their operating expertise. BEP locks in stable cash flows via long-term (usually 20-year), inflation-adjusted power purchase agreements (PPAs). These contracts are mostly entered into with utilities, distribution companies, and industrial users. Most of these counterparties have investment-grade credit ratings, and the weighted average remaining contract is for 16 years.

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Recent Buy: Brookfield Renewable Partners (BEP)

Earlier in July I bought 26 shares of Brookfield Renewable Partners (BEP) for $ 34,83 per share. The total amount of money invested just over $ 900. Brookfield Renewable Partners currently pays an annual dividend of € 2,06 per share so with this purchase my yearly dividend income increases with € 40 after taxes.

The main reasons for my purchase are:

• Brookfield Renewable Partners is a big player in the renewable energy space. This is one of the big, of not the biggest trend for the coming decades in which a shift in energy supply from fossil fuels to renewables will be made. I want to part of this shift by owning the best companies in this space.
• They currently pay a healthy dividend of around 6% which has grown around 5-6% per year in the last decade. Management expects dividend growth of 5 to 9% for the near future. 
• I didn't have any exposure to utilities in my portfolio as of yet.

With my monthly deposits and dividend income I expect to do another purchase in three months.

What do you think of my purchase of Brookfield Renewable Partners? Are you currently looking to open (or add) a position in BEP?