Why Brookfield Renewable Stock Surged Nearly 14% in October
Shares of Brookfield Renewable Corporation (NYSE: BEPC) jumped 13.9% in October, according to data provided by S&P Global Market Intelligence. That was a noteworthy increase as the newly created entity outperformed Brookfield Renewable Partners (NYSE: BEP), which only rose 3% last month. A couple of factors powered the company's stronger surge.
Investors have preferred Brookfield Renewable Corporation over Brookfield Renewable Partners since the latter entity created the new option this summer. Overall, shares of Brookfield Renewable Corporation have rallied nearly 60% since its spinoff, roughly doubling the return of Brookfield Renewable Partners during that timeframe even though the two are economically equivalent. Powering the disconnect is that investors would rather own a traditional C-Corp like Brookfield Renewable Corporation over a publicly traded partnership like Brookfield Renewable Partners. That's because some retirement accounts and indexes aren't allowed to hold partnerships and those entities send a more complicated Schedule K-1 at tax time.
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Source Fool.com
