When investors think of Master Limited Partnerships (MLPs), the oil and gas industry typically comes to mind.

This is a natural connection to make, since the vast majority of MLPs operate in oil and gas.

Brookfield Renewable Partners (BEP) is an MLP, but it operates in renewable energy.

It has a hefty 6% dividend yield, and has raised its distribution four years in a row.

With another six years, it will become a member of the Dividend Achievers, a group of 271 stocks with 10+ years of consecutive dividend increases.

You can see the full Dividend Achievers List here.

Brookfield could very well get there. The company has a stated target of 5%-9% annual dividend growth going forward.

This article will discuss why Brookfield shares could be attractive for diversification within the energy sector, as well as its high 6% yield.

Business Overview

Brookfield Renewable Partners owns, operates, and develops renewable power generation facilities. It is the listed renewable power company of Brookfield Asset Management (BAM).

Its assets are focused on the following technologies:

Approximately two-thirds of Brookfield’s assets are in North America, with the remainder spread among Europe, Brazil, and Colombia.

Source: Investor Fact Sheet, page 2

In all, the company has $25 billion of renewable assets in its portfolio, consisting of more than 10,000 megawatts of installed capacity.

The renewable energy industry has made significant progress in recent years.

Costs across the industry are coming down, and demand continues to rise. This has given companies like Brookfield the ability to scale up and expand.

Brookfield has a high-quality portfolio, with stable cash flow. Approximately 90% of Brookfield’s 2017 capacity is contracted.

And, the cash flow generated by Brookfield’s projects is not reliant on subsidies.

There are many reasons to like Brookfield’s focus on hydroelectric power.