Brookfield Renewable (BEP 1.40%) (BEPC) is an energy company focused on clean energy. The business has been laying the groundwork for growth in recent years. It now has an attractive and diversified platform that should position it well, no matter which low carbon technology takes center stage. But investors who are looking to position themselves for 2025 need to understand that Brookfield Renewable’s leadership is thinking long term.What does Brookfield Renewable do?Brookfield Renewable is actually a little complex, involving three different stock tickers. The first one you need to know about is a totally different company, Brookfield Asset Management (BAM 0.28%). Brookfield Asset Management is a large Canadian asset manager that has a long history of investing in infrastructure assets on a global scale. It created Brookfield Renewable as a way to raise capital for the clean energy investments it was making. So, at a fundamental level, Brookfield Renewable is a way for investors to invest alongside Brookfield Asset Management.Image source: Getty Images.There are two ways to buy Brookfield Renewable. There is a partnership class and a regular corporate share class. The partnership was the first one created, and it appealed mostly to small investors. The corporate share class was created to broaden the appeal to larger investors, such as pension funds, which may not have been allowed to own partnerships. The partnership and corporate classes represent the exact same entity and have the exact same dividend payment. However, the corporate class is more popular and, thus, trades with a lower yield. To put some numbers on that, Brookfield Renewable Partners has a distribution yield of 6.1%, while Brookfield Renewable Corporation has a dividend yield of 5%.As for the underlying business, Brookfield Renewable provides exposure to the solar, wind, hydroelectric, storage, and nuclear industries. Its portfolio is spread across the globe, with investments in North America, South America, Europe, and Asia. It is pretty close to a one-stop shop in the renewable power sector.Some caveats to consider with Brookfield RenewableThe first thing that investors need to understand about Brookfield Renewable is that it is operated like an asset management business. It usually buys assets when they are cheap, and invests in them to improve performance and increase value. Then, if a good price can be had, it sells assets. This is the influence of Brookfield Asset Management at play. However, Brookfield Renewable is still a business, and investors need to think about its future prospects in the energy sector, too.Brookfield Renewable itself isn’t thinking about 2025 specifically, as some investors might be doing now that a new year is upon Wall Street. It is thinking long term and has a plan that extends well into the future. For example, in recent years, Brookfield Renewable has used its foundation in hydroelectric power to expand in solar and wind. Seeing opportunity in
Dom. Gen 5th, 2025
