The renewable energy sector is currently attracting significant attention in the markets due to government support, high revenue growth rates, and a sense of social responsibility. While not all renewable energy stocks may be winners, there are notable companies within the sector that continue to perform well. One such company listed on the TSX that provides exposure to renewable energy in a diversified manner is Brookfield.
Brookfield (TSX:BN) is a diversified financial conglomerate and part-owner of Brookfield Renewable Partners (TSX:BEPC), a major player in the renewable power industry. Brookfield Renewable Partners recently made headlines by signing the largest clean energy deal in history, supplying Microsoft with 10.5 gigawatts of power. This demonstrates Brookfield’s position as a leading player in renewable energy globally.
While Brookfield Renewable Partners is a pure play on renewable energy, Brookfield Corp offers a more diversified portfolio with exposure to a fast-growing insurance business, highly profitable asset management business, and a valuable real estate portfolio. This diversification can be beneficial for portfolio strategy, providing exposure to different assets that are not closely correlated.
Brookfield has made substantial investments in renewable energy, including owning a majority stake in Brookfield Renewable Partners, managing renewable funds, and holding investments in renewable energy companies like TransAlta. Additionally, Brookfield has shown strong earnings performance, with its most recent release surpassing analyst expectations.
In conclusion, Brookfield stock presents an opportunity to include renewable energy exposure in a portfolio. With its significant ownership in Brookfield Renewable Partners and diverse investment holdings, Brookfield offers a sensible choice for investors seeking exposure to the renewable energy sector.
