I'm guessing that i'm just confused about something here so I would really appreciate if someone would take the time to ELI5. The creation of a corporation opened the way for these institutions to take a position in one of the worlds largest publicly traded clean energy enterprises. In terms of actual generation hydro was responsible for 63% of the total followed by wind with 23% and solar by 11%. BEP stock already discounts any green bubble valuation or Biden victory upside. This is a snippet from Brookfield: Class A shares of BIPC are structured to provide an economic return equivalent to BIP units though a traditional corporate structure. However, owning Brookfield Infrastructure Partners outright might be tricky for some income investors. The company is growing strongly, enhancing its growth potential by strategic acquisitions and highly confident that it can achieve double-digit FFO per share growth over the next 5 years, which will also manifest itself in terms of dividend growth albeit at a slightly lower pace. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); This site uses Akismet to reduce spam. Both parent and child had a stellar 2019. BIP vs BIPC - Confused investor here : r/stocks - Reddit The shares are not equal as in you cannot swap back and forth. On the date of publication, Mark R. Hake did not hold a long or short position in any of the securities in this article. The corporate shares should only vary due to the tax incentive if they are the same business. For example, page F-11 of the 10-K shows that the company actually lost 61 cents in net income per unit for the year. The results mark the continuation of the company's long-term path of double-digit FFO growth. I hate spam and you should too. Nasdaq Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Highlights. Its diversified portfolio consists of $52B assets under management, over 3,000 operating employees and over 5,000 power generating facilities located mostly in North and South America as well as Europe, India and China. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Given that BIP.UN is a Bermuda-based limited partnership, distributions historically included foreign dividend and interest income, Canadian source interest, other investment income and capital gains, as well as return of capital. BEPC vs BEP Stock: Which is the Better Buy? Should I buy Brookfield Renewable (BEPC) - Zacks Write CSS OR LESS and hit save. While economically equivalent, investors cannot directly exchange BEP units for BEPC shares, so a sale needs to take place if the intention is to own more BEPC shares. We use cookies for analytics tracking and advertising from our partners. Therefore Dividend Earner doesn't bear any responsibility for any trading losses you might incur as a result of using this data. In other words, BEPC is a Canadian corporation set up to be the equivalent to the limited partnership BEP. But the average daily volume in New York is more than three times that on the TSX. Detroit is also known for pizza, Grand Rapids is known for its breweries, Frankenmuth is known for its chicken while the upper peninsula is known for more traditional foods like pasties, fresh fish, and homemade jam. Due to the real estate crash a few years ago, chefs from out of state are moving in and opening restaurants of all kinds, especially in Detroit. In total quarterly actual generation increased by 10% demonstrating the value of diversified portfolio. John Bromels has no position in any of the stocks mentioned. For example, the stock is up over 88% in the past year, including almost 23% in the last 6 months. The new Brookfield Renewable Corporation (TSX, NYSE: BEPC) has become an instant hit with investors, to the point where it is defying expectations. Overall, over the next 5 years, Brookfield Renewable has strong visibility on double-digit FFO per-unit growth, which ultimately leaves no doubt that this streak of at least 5% annual distribution raises will easily continue. Investors may take further aspects and their own due diligence into consideration before making a decision. Investing in renewables has turned out to be a runaway train in 2020 with investors bidding up almost every single stock in the solar, wind, hydroelectric and hydrogen space. These 5% hikes have become the norm over the last couple of years as the company is working towards reaching its target payout ratio. In a taxable account, we would not see a big advantage to switching BEP units to BEPC shares if the BEP units were sitting at a gain. As a result, BEP expects that BEPC exchangeable shares will trade at a market price impacted by the combined business performance of Brookfield Renewable group, hence tracking the market price of the BEP units. Various analysts have commented on this point about the companys limited upside. Opinions and views expressed throughout the 5i websites may change and/or differ from the opinions of individuals employed by 5i Research and/or affiliated companies. Better Buy: Brookfield Infrastructure Partners vs. Brookfield Asset If you like this content and want to read more about this and/or other dividend-related topics, please hit the "Follow" button on top of the screen and you will be notified of new releases. In the past, when BEPC traded too far ahead of BEP, BAM sold a . Edit: I'm a U.S. investor holding these in a ROTH, so trying to decipher through that lens if it makes a difference. If you have an ad-blocker enabled you may be blocked from proceeding. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. If a unitholder of BEP would like to acquire additional BEPC exchangeable shares, they would be required to acquire them in the market once they start trading. and our BEP believes this will attract new investors who will benefit from investing in its globally diversified portfolio of renewable power assets. This deal will add 360 MW of solar power generation to Brookfield's portfolio. Please register to participate in our discussions with 2 million other members - it's free and quick! If BEP units and BEPC shares trade at near-equivalent prices, then a switch within registered accounts could make sense. Do not buy or sell any stock without conducting your own due diligence or consulting an advisor. And the best news is that although the stock price has been rallying the business opportunity remains massive with investments into renewables expected to double or more than quadruple over the next decade compared to investment volumes over the last 5 years according to Bloomberg New Energy Finance.