Analysis of Three High-Yield Canadian Stocks: Strong Dividends and Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
0mins
Source: NASDAQ.COM
- Attractive Dividends: Bank of Nova Scotia offers a 4.2% dividend yield, significantly higher than the 2.5% average for U.S. banks, reflecting its low-risk profile and strong operational foundation under strict Canadian regulations.
- Growth Potential: Brookfield Renewable Partners spans hydro, solar, and wind energy with a 5.3% yield, and plans to increase distributions by 5% to 9% annually, indicating a robust long-term growth opportunity in the clean energy sector.
- Stable Cash Flows: Enbridge, one of North America's largest midstream operators, provides a 5.8% yield, with its diversified energy portfolio ensuring reliable cash flows, making it a suitable option for investors seeking stability.
- Investment Opportunities: These three companies stand out for their risk-reward balance, making them ideal choices for investors looking to diversify beyond the U.S. market while seeking high yields.
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Analyst Views on BEP
Wall Street analysts forecast BEP stock price to rise
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 31.100
Low
27.00
Averages
34.73
High
39.00
Current: 31.100
Low
27.00
Averages
34.73
High
39.00
About BEP
Brookfield Renewable Partners L.P. operates publicly traded platforms for renewable power and decarbonization solutions. The Company’s renewable power portfolio includes hydroelectric, wind, utility-scale solar, distributed generation, and storage facilities across North America, South America, Europe, and Asia-Pacific. Its operations are divided into six segments: hydroelectric, which is further categorized by geography (North America, Colombia, and Brazil); wind; utility-scale solar; distributed energy and storage, including distributed generation, pumped storage, and battery energy storage systems; sustainable solutions, encompassing agricultural renewable natural gas, carbon capture and storage, recycling, cogeneration, biomass, nuclear services, electro fuels, and power transformation; and corporate. The Company’s total power portfolio comprises approximately 46,200 megawatts of installed capacity and a development pipeline of approximately 200,000 megawatts.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Brookfield Renewable Partners Shows Strong Dividend Performance
- Dividend Yield Analysis: Brookfield Renewable Partners boasts a current dividend yield of nearly 5%, significantly higher than the S&P 500 average, indicating strong investor interest despite the typical caution associated with yields above 4%.
- Financial Performance Improvement: In 2025, Brookfield Renewable Partners reported $1.3 billion in funds from operations (FFO), reflecting a 13.8% increase, with FFO per share rising to $0.52, a 10.8% growth, while management anticipates a 10% annual increase in FFO per unit.
- Long-Term Contract Security: With 90% of its electricity sales secured through long-term power purchase agreements averaging 13 years, the company enjoys stable cash flows, and 70% of these agreements include inflation-adjustment clauses, enhancing its financial flexibility.
- Growing Market Demand: As the expansion of data centers and manufacturing drives electricity needs, U.S. demand is projected to grow by 35% to 50% by 2040, positioning Brookfield advantageously through partnerships with Microsoft and Alphabet, thereby solidifying its market presence.
See More
Brookfield Renewable Shares Surge 14% Amid Dividend Increase
- Stock Performance: Brookfield Renewable's shares have surged over 14% so far in 2026, reflecting strong market confidence in its renewable energy business and investor recognition of its future growth potential.
- Dividend Increase: The company has just raised its quarterly dividend by 5%, bringing it to $0.392 per share, marking five consecutive years of dividend increases, which underscores its stable cash flow and robust financial performance, thereby boosting investor confidence.
- FFO Growth: In 2025, Brookfield reported $1.3 billion in funds from operations (FFO), a 13.8% increase, with FFO per share at $0.52, up 10.8%, demonstrating the company's ongoing profitability and growth potential in the renewable energy sector.
- Long-Term Contract Advantage: With 90% of its electricity sales coming from long-term power purchase agreements averaging 13 years, and 70% of these contracts indexed to inflation, Brookfield is well-positioned to withstand future market fluctuations, ensuring a reliable revenue stream.
See More
Brookfield Renewable's Investment Potential
- Clean Energy Leader: Brookfield Renewable operates a globally diversified portfolio of clean power assets, including hydro, wind, and solar, across North America, South America, Europe, and Asia, ensuring its competitive edge in the renewable energy market.
- Strategic Partnership: Brookfield's collaboration with Microsoft aims to deliver over 10.5 gigawatts of new renewable energy capacity between 2026 and 2030 for its cloud and AI operations, making this deal nearly eight times larger than the largest corporate power purchase agreement ever signed.
- Growth Drivers: The company anticipates that new power purchase agreements, such as its hydropower deal with Google, will drive over 10% annual growth in funds from operations per share through 2030, supporting its plans to increase dividends by 5% to 9% annually.
- Investment Return Potential: A $25,000 investment today could grow to nearly $1 million in 30 years at a 13% average annual return, highlighting Brookfield's potential to transform investors' financial futures amid rising power demands.
See More
Brookfield and Oneok's Sustainable Growth Outlook
- Stable Cash Flow: Brookfield Renewable secures 90% of its electricity sales through long-term power purchase agreements (PPAs) with an average contract length of 13 years, with 70% of its revenue linked to inflation, ensuring stable and steadily rising cash flow.
- Major Project Progress: Brookfield recently signed two 20-year hydropower agreements with Google, expected to generate over $3 billion in revenue, while the company has an 84 gigawatt backlog of renewable energy projects, aiming to increase its annual delivery capacity to 10 gigawatts by 2027.
- Acquisition-Driven Growth: Oneok, a leading pipeline company, generates over 90% of its revenue from long-term contracts and government-regulated rate structures, significantly expanding and diversifying its operations through acquisitions, with expectations of capturing hundreds of millions in commercial synergies in the coming years.
- Visible Dividend Growth: Both Brookfield and Oneok generate durable cash flows backed by long-term contracts, supporting their high-yield dividends; Brookfield plans to increase its dividend by 5% to 9% annually, while Oneok aims for a 3% to 4% increase, enhancing investor confidence for long-term holdings.
See More
Traditional Companies Emerge in AI Wave
- Data Center Sales Surge: Texas Instruments reported a 70% increase in sales within the data center segment in 2025, indicating a rapid expansion in data center construction that boosts demand for its analog chips, thereby enhancing its competitive position in the AI market.
- Importance of Power Management: Texas Instruments' analog chips convert real-world signals into digital signals and manage power, ensuring reliable operation of data centers, which highlights their critical role in AI infrastructure.
- Hydrogen Solutions Advantage: Bloom Energy offers hydrogen power cells and electrolyzers that can deliver power to data centers faster than traditional electric utilities can build infrastructure, having already signed agreements with American Electric Power and Brookfield Asset Management to expand its sales channels in the AI sector.
- Attractiveness of Renewable Energy: Brookfield Renewable, a globally diversified clean energy company, collaborates with clients like Microsoft and Google to provide electricity, and its 5.2% dividend yield appeals to many investors, indicating potential growth in the AI industry.
See More
Analysts Predict AI Infrastructure Spending to Surge
- Eaton's Positive Outlook: Eaton's backlog is expected to grow by 34% over 2024, indicating strong demand from data center clients, and while the company plans to spin off its vehicle division to enhance profitability and growth potential, it will maintain its leadership in power control.
- Texas Instruments' New Business Growth: Texas Instruments has just categorized data center sales as a new business segment, with a 64% increase in 2025, which not only enhances the company's market position but also may help it recover amid broader industry demand lulls.
- Brookfield Renewable's Strategic Partnerships: Brookfield Renewable has secured large deals with Microsoft and Alphabet to support their data center build-outs, positioning itself to benefit from the growing demand for clean energy, with dividend yields of 5.1% and 3.7% providing stable returns for investors.
- Future Growth Potential: As AI infrastructure builds out, Eaton, Texas Instruments, and Brookfield Renewable are all poised to benefit, with Eaton's spin-off plan driving growth, Texas Instruments attracting investors with above-market dividends, and Brookfield appealing to those seeking stable income through its high dividends.
See More
Brookfield Renewable Partners Shows Strong Dividend Performance
- Dividend Yield Analysis: Brookfield Renewable Partners boasts a current dividend yield of nearly 5%, significantly higher than the S&P 500 average, indicating strong investor interest despite the typical caution associated with yields above 4%.
- Financial Performance Improvement: In 2025, Brookfield Renewable Partners reported $1.3 billion in funds from operations (FFO), reflecting a 13.8% increase, with FFO per share rising to $0.52, a 10.8% growth, while management anticipates a 10% annual increase in FFO per unit.
- Long-Term Contract Security: With 90% of its electricity sales secured through long-term power purchase agreements averaging 13 years, the company enjoys stable cash flows, and 70% of these agreements include inflation-adjustment clauses, enhancing its financial flexibility.
- Growing Market Demand: As the expansion of data centers and manufacturing drives electricity needs, U.S. demand is projected to grow by 35% to 50% by 2040, positioning Brookfield advantageously through partnerships with Microsoft and Alphabet, thereby solidifying its market presence.
See More
Brookfield Renewable Shares Surge 14% Amid Dividend Increase
- Stock Performance: Brookfield Renewable's shares have surged over 14% so far in 2026, reflecting strong market confidence in its renewable energy business and investor recognition of its future growth potential.
- Dividend Increase: The company has just raised its quarterly dividend by 5%, bringing it to $0.392 per share, marking five consecutive years of dividend increases, which underscores its stable cash flow and robust financial performance, thereby boosting investor confidence.
- FFO Growth: In 2025, Brookfield reported $1.3 billion in funds from operations (FFO), a 13.8% increase, with FFO per share at $0.52, up 10.8%, demonstrating the company's ongoing profitability and growth potential in the renewable energy sector.
- Long-Term Contract Advantage: With 90% of its electricity sales coming from long-term power purchase agreements averaging 13 years, and 70% of these contracts indexed to inflation, Brookfield is well-positioned to withstand future market fluctuations, ensuring a reliable revenue stream.
See More
Brookfield Renewable's Investment Potential
- Clean Energy Leader: Brookfield Renewable operates a globally diversified portfolio of clean power assets, including hydro, wind, and solar, across North America, South America, Europe, and Asia, ensuring its competitive edge in the renewable energy market.
- Strategic Partnership: Brookfield's collaboration with Microsoft aims to deliver over 10.5 gigawatts of new renewable energy capacity between 2026 and 2030 for its cloud and AI operations, making this deal nearly eight times larger than the largest corporate power purchase agreement ever signed.
- Growth Drivers: The company anticipates that new power purchase agreements, such as its hydropower deal with Google, will drive over 10% annual growth in funds from operations per share through 2030, supporting its plans to increase dividends by 5% to 9% annually.
- Investment Return Potential: A $25,000 investment today could grow to nearly $1 million in 30 years at a 13% average annual return, highlighting Brookfield's potential to transform investors' financial futures amid rising power demands.
See More
Brookfield and Oneok's Sustainable Growth Outlook
- Stable Cash Flow: Brookfield Renewable secures 90% of its electricity sales through long-term power purchase agreements (PPAs) with an average contract length of 13 years, with 70% of its revenue linked to inflation, ensuring stable and steadily rising cash flow.
- Major Project Progress: Brookfield recently signed two 20-year hydropower agreements with Google, expected to generate over $3 billion in revenue, while the company has an 84 gigawatt backlog of renewable energy projects, aiming to increase its annual delivery capacity to 10 gigawatts by 2027.
- Acquisition-Driven Growth: Oneok, a leading pipeline company, generates over 90% of its revenue from long-term contracts and government-regulated rate structures, significantly expanding and diversifying its operations through acquisitions, with expectations of capturing hundreds of millions in commercial synergies in the coming years.
- Visible Dividend Growth: Both Brookfield and Oneok generate durable cash flows backed by long-term contracts, supporting their high-yield dividends; Brookfield plans to increase its dividend by 5% to 9% annually, while Oneok aims for a 3% to 4% increase, enhancing investor confidence for long-term holdings.
See More
Traditional Companies Emerge in AI Wave
- Data Center Sales Surge: Texas Instruments reported a 70% increase in sales within the data center segment in 2025, indicating a rapid expansion in data center construction that boosts demand for its analog chips, thereby enhancing its competitive position in the AI market.
- Importance of Power Management: Texas Instruments' analog chips convert real-world signals into digital signals and manage power, ensuring reliable operation of data centers, which highlights their critical role in AI infrastructure.
- Hydrogen Solutions Advantage: Bloom Energy offers hydrogen power cells and electrolyzers that can deliver power to data centers faster than traditional electric utilities can build infrastructure, having already signed agreements with American Electric Power and Brookfield Asset Management to expand its sales channels in the AI sector.
- Attractiveness of Renewable Energy: Brookfield Renewable, a globally diversified clean energy company, collaborates with clients like Microsoft and Google to provide electricity, and its 5.2% dividend yield appeals to many investors, indicating potential growth in the AI industry.
See More
Analysts Predict AI Infrastructure Spending to Surge
- Eaton's Positive Outlook: Eaton's backlog is expected to grow by 34% over 2024, indicating strong demand from data center clients, and while the company plans to spin off its vehicle division to enhance profitability and growth potential, it will maintain its leadership in power control.
- Texas Instruments' New Business Growth: Texas Instruments has just categorized data center sales as a new business segment, with a 64% increase in 2025, which not only enhances the company's market position but also may help it recover amid broader industry demand lulls.
- Brookfield Renewable's Strategic Partnerships: Brookfield Renewable has secured large deals with Microsoft and Alphabet to support their data center build-outs, positioning itself to benefit from the growing demand for clean energy, with dividend yields of 5.1% and 3.7% providing stable returns for investors.
- Future Growth Potential: As AI infrastructure builds out, Eaton, Texas Instruments, and Brookfield Renewable are all poised to benefit, with Eaton's spin-off plan driving growth, Texas Instruments attracting investors with above-market dividends, and Brookfield appealing to those seeking stable income through its high dividends.
See More
