Shares of Brookfield Renewable (NYSE: BEPC) (NYSE: BEP) saw a dramatic resurgence in May, climbing by double digits and recovering all of their losses through April, and then some. Units of the partnership surged by 32.7% while corporate shares soared by 35.7%, according to data from S&P Global Market Intelligence.

Key Drivers Behind the Surge
Several factors contributed to this remarkable turnaround for a stock that had been down nearly 20% earlier this year. A combination of record quarterly numbers, a significant agreement with Microsoft, and robust growth plans, including dividend hikes, played a pivotal role.

Impressive Earnings and Strategic Moves
Brookfield Renewable started 2024 strong, posting record funds from operations (FFO) in the first quarter. The FFO saw an 8% year-over-year increase, fueled by pipeline development and acquisitions. The company aims to bring nearly 7 gigawatts (GW) of new renewable capacity online this year and generate $1.3 billion from the sale of mature assets.

Moreover, Brookfield Renewable signed a groundbreaking deal with Microsoft to deliver 10.5 GW of renewable energy capacity between 2026 and 2030. This capacity will support Microsoft's AI-powered cloud services. The agreement also holds potential for expansion into regions such as India, Asia Pacific, and Latin America.

Brookfield Renewable: A Strong Investment Opportunity
Brookfield Renewable has consistently been a high-conviction stock, and its latest performance further strengthens this belief. The company expects its first-quarter success to help achieve its target FFO-per-unit growth of at least 10% for the year, setting 2024 up to be another record year.

Looking ahead, Brookfield Renewable anticipates its FFO per unit to grow by 10% or more annually from 2023 to 2028. This growth will be driven by its development pipeline, margin improvements, inflation escalators within contracts, and potential mergers and acquisitions. With nearly 90% of its cash flows secured through contracts and plans to invest $7 billion to $8 billion into growth over the next five years, the company is well-positioned for future success.

Supported by FFO growth, Brookfield Renewable is confident in raising its annual dividend by 5% to 9%, presenting an attractive opportunity for investors. Currently, the stock yields 4.7%, and 5.3% for partnership units, making it a smart pick for value investors who capitalized on the stock's dip in May.

Investment Considerations
Before investing in Brookfield Renewable, it’s important to consider broader market trends and expert opinions. The Motley Fool Stock Advisor team has identified other stocks they believe are currently better buys, emphasizing the importance of a well-rounded investment strategy.

Source: finance.yahoo.com