Last year was a very strong year for Brookfield Renewable (BEPC +5.90%)(BEP +4.85%). The global renewable energy company delivered record financial results and made significant progress in securing more growth. That enabled the company to continue increasing its nearly 4% yielding dividend.

The renewable energy dividend stock expects to continue growing briskly for years to come. That puts it in a strong position to generate powerful total returns for investors going forward.

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Powerful growth drivers

Brookfield Renewable generated $1.3 billion in funds from operations (FFO) last year, or $2.01 per share. That’s up 10% from 2024. The company benefited from the strong performance of its existing clean energy businesses, its development activities, and recently closed acquisitions.

The company’s legacy hydroelectric business generated robust FFO of $607 million, up 19% year-over-year, driven by higher revenue from commercial initiatives and stronger generation in Canada and Colombia. Demand for hydropower has accelerated over the past year as data center developers like Google seek to secure more baseload power for their facilities.

Brookfield Renewable

Today’s Change

(5.90%) $2.32

Current Price

$41.64

Brookfield’s distributed energy, storage, and sustainable solutions platform also had a strong year, generating $614 million in FFO, a nearly 90% year-over-year increase. The company benefited from its Neoen acquisition and Westinghouse’s strong performance, driven by a resurgence in nuclear power demand.

Plugged into powerful growth trends

Demand for clean power should continue to surge in the coming years. Multi-decade trends such as reindustrialization, electrification, and data center expansion will require the development of all forms of energy in the coming years. Brookfield is in an ideal strategic position to support these megatrends due to its leadership in renewable power, battery storage expertise, and its investment in the nuclear services company Westinghouse.

The company expects these catalysts will power more than 10% annual FFO per share growth through at least 2030. That should support continued dividend growth of 5% to 9% annually. Brookfield is raising its payout by another 5% for 2026, building on its record of delivering at least 5% annual dividend increases since its public market listing in 2011.

Brookfield delivered a record 8 gigawatts (GW) of new clean energy capacity last year, a 20% increase from the prior year. It continues to scale its development activities, aiming to deliver 10 GW of annual capacity additions by 2027. The company also continues to sign lucrative power contracts to support development projects and replace expiring agreements. It signed a deal last year to supply Google with up to 3 GW of hydropower. It’s also pursuing a first-of-its-kind opportunity to develop over 1 GW of battery storage capacity to stabilize a national power grid. Additionally, Brookfield continues to acquire expandable clean power platforms that drive its growth, including Neoen and Geronimo Power last year.

Powerful total return potential

Brookfield Renewable’s multiple growth catalysts underpin its expectation of delivering FFO per share growth of over 10% annually for the foreseeable future. That should support at least 5% annual increases in its nearly 4%-yielding dividend. This combination of income and growth positions the company to deliver mid-teens annualized total returns, making Brookfield a great stock to buy and hold for the long haul.