Thanks Steve
BEP.UN has struggled along with most income stocks, with higher rates the main reason (squeezing profitability due to higher interest expense, and more expensive to borrow money to finance growth projects). It is still growing its revenue and cash flow nicely. In the recent Investor Day, management guided that the company could provide investors with an annualized return of around 12%-15% over the next few years (with dividend included).
The payout ratio is about 80% currently (last 12 months). The distribution was raised in February. We do not think it is at any risk in the medium term. BN we think is solid, but the dividend is much lower and it is more growth-oriented. We think both look good if one can look beyond the current market malaise.