Why I Just Bought These Utilities | The Motley Fool Canada: "Another utility I like at these levels is Brookfield Renewable Energy Partners LP (TSX:BEP.UN)(NYSE:BEP). Thanks to the high U.S. dollar, it yields 6.9% at $32. It has 81% of assets in hydropower facilities and 17% in wind power.
The utility has tumbled likely because 20% of its assets are in Brazil, and the Brazilian real has fallen about 40% since the start of 2014 relative to the U.S. dollar. In the third quarter the foreign exchange rate reduced funds from operations by only 3.6%.
Further, Brookfield Renewable has 75% of assets in North America and 90% of cash flows are contracted. Adding that the utility targets a payout ratio of 60-70%, its distribution should remain safe.
The utility has increased its distribution for five consecutive years, and it forecasts to grow the distribution by 5-9% per year. The next increase is anticipated to come in the first quarter of the new year."
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