Brookfield Renewable Updates Dividend Rates for Series 1 and Series 2 Shares
Toronto, Tuesday, 1 April 2025.
Brookfield Renewable has set a 5.203% fixed dividend rate for Series 1 shares over the next 5 years and confirmed a 2.62% premium on government bonds for Series 2 shares.
Key Dividend Updates
Brookfield Renewable Partners L.P. (NYSE: BEP) has announced significant changes to its preference share dividend structure. The Series 1 Shares will carry a fixed quarterly dividend of CAD $0.3251875 per share, reflecting an annual rate of 5.203% for the five-year period from May 1, 2025, to April 30, 2030 [1]. For Series 2 Shares, the company has established a floating rate dividend that will be calculated as 2.62% above the yield on three-month Government of Canada treasury bills, with the first quarterly payment set at CAD $0.3317675 per share [1].
Current Market Position
The announcement comes as Brookfield Renewable maintains its position as a leading renewable energy company, with its common units currently trading at USD 22.50 on the NYSE [2]. The company has demonstrated a consistent track record of dividend growth, having increased its regular dividend payments by at least 5% annually since its public listing in 2011 [4]. This stability has contributed to the company’s total annualized returns of 11.2% [4], establishing it as a reliable income-generating investment in the renewable energy sector.
Conversion Options and Deadlines
Shareholders currently have important decisions to consider, with a conversion deadline of April 15, 2025 [1]. Holders of the currently outstanding 6,849,533 Series 1 Shares and 3,110,531 Series 2 Shares have the option to convert their holdings to the alternate series [1]. However, these conversions are subject to minimum holding requirements - if either series would have fewer than 1,000,000 shares outstanding after April 30, 2025, all shares will be automatically converted to the other series [1].
Future Growth Prospects
Looking ahead, Brookfield Renewable is well-positioned in the expanding renewable energy market. The company projects organic growth to drive 8% to 13% funds from operations (FFO) per share growth annually [4]. This growth trajectory is supported by a substantial project backlog of approximately 200 gigawatts in renewable energy projects, with plans to commission roughly 10 gigawatts yearly [5]. These developments align with the company’s target of maintaining 5% to 9% annual dividend growth [4][5].