Brookfield Renewable Energy (BEP.UN-T)

Good, stable company. Interest rate backdrop made 2022-23 particularly difficult for renewables. Will benefit from lower rates. Increasing demand for energy, whatever kind, is a really nice tailwind. Likes partnerships with CCO and MSFT.

In addition to owning BN, she owns this one directly for exposure to the renewable space. Likes its scale and global presence. In hydro, solar, wind. Did well under Biden, then higher rates hurt, stock's now trying to move up.

True that Trump's not as friendly to renewables. But it's a long-term, secular trend that not's going to stop.

A wonderful company, one of the best in this sector with a unique operating platform. Shares had declined, but popped after striking a deal with Microsoft in a good deal; data centres need massive power.

Recent Microsoft deal is good for the business. High quality company with excellent growth prospects. Modelling ~8% EPS growth. Very good with rise in A.I. power demand. Good place to buy at current stock price valuation. 

An AI component from the MSFT deal, encouraging. She's owned it for a long time for exposure to the renewable sector, a secular trend. Interest rates have dampened things down, as debt servicing costs increase and cashflow gets discounted at a higher rate. Rates going down would be a tailwind. 

Global. Funding for projects comes from the Brookfield group. Active asset recycling -- buy cheap, develop it to maturity, sell it for cash, redeploy that cash. Yield is 5.49%.

He looks for faster-growing, smaller names. He prefers companies that do metering and monitoring of the grid. Even though it's partnering with MSFT, he's found better ways to play the AI theme.

BIP is more sensitive to interest rates, and will constrained when rates rose. Also, they pay a dividend which was competing with high rates. As rates decline, this will benefit BIP and encourage more building projects. In contrast, BEP is a tougher go, because the transition to renewables will take longer than many expect. But BEP is best in class and its managers are fantastic. BEP's use of AI (with Microsoft) will benefit the stock, but we're ahead of ourselves. 

Most renewables over the 18 months have been under pressure due to aggressive rate hikes, but if rates decline mid-2024, you can add to this, just based on valuations.

Owns shares of company in portfolio. Likes renewable sector. Higher interest rates tough on business. If interest rates fall, will be good for bottom line. Lots of support from parent company allows for lots of options. Would recommend holding and/or buying. 

Her play in the space. More diversified with wind, solar, and hydro. Global. Positive growth prospects long term. Move towards renewables isn't going to change. Impacted by interest rates. Well managed, access to capital.

Unsure of fundamentals of company. Does not own stock. Trend line is down. Not a good time to buy. Wait for trend to reverse before buying. 

A lot more debt and uncertainty, so you'll get a lot more volatility. Complicated structures. Instead, look to pipeline names for a higher dividend and maybe some rebound in capital appreciation.

Good tail winds for the business at this time. Recent bottoming of share price a good time to buy. Strong parent company. Well positioned for 10% growth. 72% payout ratio. Price to growth ratio very good. Good time to buy. 

Cost of capital makes a lot of projects uneconomic. Increased costs can be passed through, but rate changes can take 3-5 years to be approved. Good franchise. Doesn't want to be in the space. Take some money off the table.

Brookfield in general keeps restructuring, so watch which assets they're moving around. He's owned many of the Brookfield companies, but not BEP right now. Renewables are suffering stretched PEs, driven by ESG investing, but ESG is seeing some pushback in the U.S. given the political divide there. Also, renewables are suffering under high rates, but over the long haul such rates are a plus. Doesn't expect much upside here.