No one knows exactly what the future will hold. However, some companies have more visibility into what’s ahead due to the durability of their cash flow and the growth investments they’ve secured. That gives them lots of confidence in their ability to continue increasing their dividends.
Brookfield Renewable (NYSE: BEPC) (NYSE: BEP) and Oneok (NYSE: OKE) have visibility into their growth over the next five years. As a result, you can confidently hold these dividend stocks for the long haul.
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Brookfield Renewable operates a globally diversified portfolio of renewable energy assets. It sells the bulk of the electricity it produces under long-term power purchase agreements (PPAs) with utilities and large corporate customers (90% of which are contracted for an average of 13 years). Most of these PPA link rates to inflation (70% of its revenue). The company routinely signs higher-rate PPAs as legacy agreements expire. For example, it recently signed two 20-year hydropower deals with Google, representing over $3 billion in revenue. As a result, Brookfield generates stable and steadily rising cash flow.
The company also has an enormous backlog of renewable energy development projects (84 gigawatts (GW) of advanced-stage projects). It delivered 8 GW of new capacity last year and expects to increase its annual delivery run rate to 10 GW by 2027. The company expects to deliver 10.5 GW of capacity to Microsoft alone in the 2026 to 2030 time frame as part of their global renewable energy framework agreement.
Brookfield’s growth drivers, which also include acquisitions, power its view that it can grow its funds from operations per share by more than 10% annually through 2030. That supports its plans to increase its 3.7%-yielding dividend by 5% to 9% per year. Brookfield has raised its payout by at least 5% annually since 2011.
Oneok is a leading pipeline company. It has a diversified portfolio of midstream assets that generate fee-based cash flows backed by long-term contracts and government-regulated rate structures (over 90% fee-based earnings).
The company has significantly expanded and diversified its operations in recent years through a series of acquisitions. Oneok still expects to capture hundreds of millions of dollars in commercial synergies from these deals over the next few years, boosting its cash flow. Additionally, the company has several organic expansion projects underway that should enter commercial service through the middle of 2028. It has ample financial flexibility to make bolt-on acquisitions and approve additional expansion projects to further enhance and extend its growth.
