Image source: Getty Images
Planning for a consistent and reliable income stream through dividend-paying stocks is a financial objective shared by many investors. Brookfield Renewable Partners (TSX:BEP.UN) stands out as a prominent and significant player in the rapidly growing renewable energy sector, offering investors an attractive opportunity to generate such income. If your goal is to achieve $500 per quarter in dividend income specifically from this stock, here’s a breakdown of what you would need to consider.
First, the stock
Brookfield Renewable Partners is a globally recognized entity that focuses on owning and operating a diverse portfolio of renewable power assets. These assets include a wide range of technologies, such as hydroelectric, wind, solar, and energy storage facilities. The company’s strong commitment to sustainable energy practices has firmly positioned it as a leader in the ongoing global transition towards cleaner, more environmentally friendly power sources.
As of writing, the dividend stock offers its investors an annual dividend of $2.14 per share. Based on the current stock price, this annual dividend results in an attractive dividend yield of approximately 7.3%. It’s also important to note that these dividends are distributed to shareholders on a quarterly basis, amounting to $0.535 per share.
It is absolutely essential for any investor considering such a significant investment to carefully evaluate the financial health and overall performance of BEP.UN. In its latest earnings report, the company announced record funds from operations (FFO) of $1.217 billion for the year ending Dec. 31, 2024. This represents a substantial 10% increase compared to the FFO reported in the previous year. This significant growth in FFO reflects the company’s strong operational performance across its diverse portfolio of renewable power assets and the effectiveness of its management team.
Making the income
So, what would it take to earn that $500 in quarterly income from this dividend stock? This would mean creating $2,000 in annual income through dividends alone. So, here is how that might shake out.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
| BEP.UN | $29.20 | 935 | $2.14 | $2,000.90 | quarterly | $27,302 |
You could generate $500 per quarter or $2,000 per year with an investment of $27,302! While the prospect of generating $500 in passive income on a monthly basis from dividends is undoubtedly appealing, it is crucial to acknowledge that investing a substantial sum in a single stock inherently carries a certain level of risk.
To effectively mitigate potential market volatility and company-specific risks, diversification across a range of different stocks and asset classes is a fundamental principle of sound investment strategy. Consulting with a qualified and experienced financial advisor can provide invaluable assistance in tailoring an investment strategy that aligns precisely with your individual financial goals, your personal risk tolerance, and your overall investment timeline.
Bottom line
Brookfield Renewable presents a compelling opportunity for investors seeking to generate a consistent stream of dividend income. This is supported by the company’s strong and leading position within the rapidly expanding renewable energy sector and its solid and growing financial performance. However, it is of paramount importance to exercise careful consideration, conduct thorough due diligence, and seek professional financial advice — especially before making any significant investment decisions — particularly those involving a substantial allocation of capital to a single dividend stock.