The Green Revolution Is Back On. Here's How to Get Involved.

If you’re confused about the current state of the Green Revolution, you’re not the only one. Sustainability has been a buzzword for years now, and for good reason. Climate change is only continuing to worsen, and many companies are dedicated to going green. Yet progress has been incredibly slow, and the path to sustainability is littered with both successes and failures. Which will Brookfield Renewables (NYSE: BEPC) turn out to be? Let’s take a look.

When Great Ideas Meet Reality

AI-powered data centers are growing at a phenomenal rate, with AI projected to become a multi-trillion-dollar industry over the next several years. But these data centers require incredible amounts of electricity. They’re already consuming between 1% and 2% of the world’s power, which is expected to grow to 3% - 4% by 2030. Brookfield Renewable has emerged as a global leader in meeting this unprecedented demand through renewable energy sources. It looks like it can’t lose, right?

But investors would be smart to be cautious. The reality is that sustainability is hard. In a market where consumers expect everything to be cheap, fast, and readily available, it’s hard for green companies to compete. Part of this is because the technologies are relatively new. This tends to mean they’re expensive and also prone to operational issues. Just think of all the various recalls on things like electric vehicles…not exactly comforting for consumers who are considering paying a premium for them. We’re getting there, but it takes true perseverance and a dedicated customer base. Does Brookfield Renewable have what it takes?

By the Numbers

Brookfield is off to a fantastic start in powering the AI revolution. The company recently signed a massive agreement with Microsoft, adding 10.5 GW of power to the 1 GW Brookfield had previously agreed to supply. This deal is eight times larger than any corporate power purchase agreement in history. It’s also important to note that the deal could grow even larger, covering a variety of international markets, in coming years.

Brookfield doesn’t solely rely on wind and solar power. It’s also working on some groundbreaking new carbon-free technologies. The company already has a solid reputation for its ability to get things done, which is reflected in its financials. Its dividend payout is already sitting at about 5%, and is on track to rise by 5% to 9% annually. But Wall Street has yet to catch up, with Brookfield currently trading at about 30% of its three-year high. If you’re ready to jump on board, now would be a good time to buy the dip.

Neither Lisa Fritscher nor Stocks.News have positions in this company.