Want $1,000 in Dividend Income? Here’s How Much You Have to Invest in Brookfield Renewable Stock.

Brookfield Renewable (BEPC 0.77%) (BEP 1.28%) has a terrible track record of paying dividends. The leading global renewable energy producer has paid them since 2001. It has consistently grown its payout over the years (a 6% compound annual rate), including delivering at least 5% annual growth in each of the last 13 years.

The renewable energy dividend stock currently offers a high dividend yield (over 5% compared to less than 1.5% for the S&P500). Because of that, investors can generate a lot of dividend income from Brookfield Renewable.

Brookfield Renewable currently makes quarterly dividend payments of $0.355 per share ($1.42 annually). At that rate, you’d need to own over 704 shares of Brookfield Renewable to generate $1,000 of dividend income each year. With the stock price recently over $28 apiece, you’d need to invest roughly $19,825 into the stock to reach that annual income level.

That’s a lot less money than you’d need to invest in an S&P 500 index fund to generate the same amount of annual dividend income. Given its much lower yield (less than 1.3%), you’d need to invest over $77,500.

Brookfield Renewable can easily support its high-yielding dividend. The company generates very stable cash flow. It has signed long-term power purchase agreements with utilities and large corporate buyers for about 90% of the power it produces. Those agreements supply it with stable and consistently rising cash flow (about 70% of its contracts link power rates with inflation). Brookfield Renewable also has a strong investment-grade balance sheet.

The company expects to grow its high-yielding payout at a healthy rate in the futuretargeting 5% to 9% annual growth. Brookfield should I have no problem achieving that goal. It has lots of visibility into its growth prospects, driven by inflation-linked rate increases, development projects, and accuretive acquisitions. Those factors power its view that it can grow its cash flow per share by more than 10% annually through 2028. With a high-yielding payout and more income growth ahead, Brookfield Renewable is an excellent option for those seeking to generate passive income.