Brookfield Renewable and NextEra Energy: Strong Prospects in Clean Energy Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Source: Fool
- Stable Cash Flow: Brookfield Renewable's renewable energy portfolio generates stable cash flow through long-term contracts linked to inflation, supporting its dividend growth of at least 5% annually since 2011, with a current yield of nearly 4%.
- Strong Growth Outlook: Brookfield expects over 10% annual free cash flow per share growth through 2030, driven by its extensive development pipeline and acquisition activities, enhancing its long-term investment appeal.
- Robust Dividend Growth: NextEra Energy's utility (FPL) and clean energy infrastructure development provide stable cash flow, with a current dividend yield of nearly 3% and a 10% compound annual growth rate over the past 20 years, indicating strong dividend growth potential.
- Capital Investment Plans: NextEra plans significant capital investments in the coming years to support surging power demand, projecting over 8% annual adjusted earnings per share growth through 2035, and aims to increase dividends by 6% annually in 2027 and 2028, further enhancing investor returns.
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Analyst Views on BEPC
Wall Street analysts forecast BEPC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BEPC is 43.67 USD with a low forecast of 35.00 USD and a high forecast of 48.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 40.630
Low
35.00
Averages
43.67
High
48.00
Current: 40.630
Low
35.00
Averages
43.67
High
48.00
About BEPC
Brookfield Renewable Corp. operates renewable power platforms and sustainable solutions. The Company’s operations consist of over 13,948 MW of installed hydroelectric, wind, solar, storage and ancillary capacity across Brazil, Colombia, North America and Europe. Its sustainable solutions assets include investment in a leading global nuclear services business and a portfolio of investments in carbon capture and storage capacity, agricultural renewable natural gas, materials recycling and eFuels manufacturing capacity, among others. It is focused on power markets in the United States. Its hydroelectric capacity in the United States is located in New York, Pennsylvania, and New England. In New York, it has over 74 hydroelectric facilities, in Pennsylvania, four hydroelectric facilities, and in New England, 48 hydroelectric facilities. Through its subsidiary TerraForm Power, it has a diverse portfolio of wind and solar platforms located in California, Illinois, Texas and New York.
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's AI-Driven Growth Potential
- Surging Market Demand: With accelerating demand for tech hardware like chips, Brookfield Renewable anticipates robust AI-driven growth in 2026 and beyond, reinforcing its leadership in the renewable energy sector.
- Strategic Partnership Agreement: The global renewable energy framework agreement with Microsoft will deliver over 10.5 gigawatts of power to support its cloud and AI operations, making it eight times larger than the largest corporate power purchase agreement ever signed.
- Renewable Energy Investments: Brookfield plans to invest $10 billion over the next five years to support development projects and acquisitions, expecting to drive its funds from operations per share to grow at over 10% annually through 2030, enhancing its market competitiveness.
- Strong Return Expectations: With annual dividend increases projected between 5% and 9%, combined with robust income growth, Brookfield could achieve mid-teens annual returns in 2026 and beyond, further solidifying its position in the renewable energy market.
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Brookfield Renewable Partners' AI Data Center Opportunity
- Long-Term Power Contracts: Brookfield Renewable Partners has secured a 3-gigawatt power supply agreement with Google and a larger 10.5-gigawatt deal with Microsoft, ensuring future electricity needs for data centers, thereby enhancing revenue stability and market competitiveness.
- Capital Investment Plans: The company expects to invest between $9 billion and $10 billion over the next five years, which is projected to drive funds from operations growth of over 10% annually and support a long-term distribution growth target of 5% to 9%, showcasing a robust financial outlook.
- Nuclear Investment Potential: Notably, Brookfield's investment in Westinghouse, which has secured an $80 billion deal with the U.S. government for nuclear reactor construction, indicates that the nuclear business may experience new growth opportunities amid rising electricity demand from AI data centers.
- Revenue Stability: As of Q3 2025, Brookfield's average contract length is 13 years, with approximately 70% indexed to inflation and 75% of revenue derived from developed countries, ensuring stable cash flows and high yields in the renewable energy sector.
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