This 5.2% Dividend Stock Is a Must-Buy as Trump Threatens Tariffs Again

U.S. President Donald Trump’s recent warning of a 100% tariff on Canadian goods if Canada deepens trade ties with China quickly reminded investors how fragile cross-border trade relationships can be. Whether tariffs actually materialize or not, the uncertainty alone can be enough to shake confidence and make markets jumpy. When trade risks return, it makes sense for Foolish investors to shift their focus away from short-term trades and toward consistency.

Fundamentally solid Canadian stocks tied to essential infrastructure usually hold up better during these periods of uncertainty. And the renewable power sector is a good example, as electricity still needs to flow, and long-term contracts help protect the revenue of renewable power companies. In this article, I will talk about a 5.2% dividend stock listed on the Toronto Stock Exchange that could offer a calmer ride as tariff headlines make a comeback.

Why this dividend stock fits a tariff-heavy market

For investors looking for reliable stocks as tariff talk heats up, Brookfield Renewable Partners (TSX:BEP.UN) could be a safe stock to consider. The company mainly operates one of the world’s largest publicly traded renewable power platforms. Its assets span hydroelectric, wind, utility-scale solar, storage, and sustainable solutions across multiple continents.

After rallying by more than 28% over the last year, Brookfield Renewable’s stock currently trades at $40.80 per share, giving it a market cap of about $12.5 billion. At this level, it offers a juicy annualized dividend yield of roughly 5.2%.

The recent gain in its stock could mainly be attributed to growing investors’ confidence in the company’s business model and its reliance on long-term power contracts. These agreements lock in revenue for years, which helps shield its cash flows even when trade and tariff risks create uncertainty.

Strong results back its dividend story

For 2025, Brookfield Renewable generated funds from operations (FFO) of US$2.01 per unit, representing a 10% YoY (year-over-year) increase. This growth mainly came from a mix of solid operating performance, new projects coming online, accretive acquisitions, and capital recycling.

In addition, the company’s hydroelectric assets stood out as a major driver in the latest quarter. Its hydro segment delivered 19% YoY growth in FFO, backed by stronger generation in key regions and new commercial initiatives. Similarly, wind and solar contributed meaningful cash flow, while distributed energy, storage, and sustainable solutions saw a sharp increase following their recent acquisitions and asset sales.

Encouraged by these strong results, Brookfield Renewable recently announced a 5% increase in its annual distribution, lifting it to US$1.60 per unit.

Long-term growth with built-in protection

With long-term power contracts and global assets, Brookfield Renewable could be a nearly perfect choice to consider amid the ongoing trade uncertainty. During 2025, the company delivered a record 8,000 megawatts of new capacity and ended the year with a massive development pipeline. It now expects to reach a 10,000-megawatt annual run rate by 2027 with the help of utility-scale solar, wind, storage, and dispatchable baseload assets.

Its strong balance sheet adds another layer of comfort. Notably, the company finished 2025 with US$4.6 billion in available liquidity and reaffirmed its strong investment-grade credit rating. In a market where tariff threats and monetary policy uncertainty can resurface overnight, Brookfield Renewable’s mix of income, growth, and financial strength makes it a dividend stock hard to ignore.

The post This 5.2% Dividend Stock Is a Must-Buy as Trump Threatens Tariffs Again appeared first on The Motley Fool Canada.

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More reading

• TSX Today: What to Watch for in Stocks on Monday, February 2
• Top Canadian Stocks to Buy Right Away With $2,000
• Better Energy Stock: Canadian Natural Resources vs. Brookfield Renewable Partners
• TFSA: 3 Canadian Dividend Stocks to Buy and Hold for Decades
• Prediction: 10 Years From Now, You’ll be Glad You Bought These Winners

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.