Please add BEPC, NYSE
Is there any advantage of holding BEPC instead of BEP?
I believe it’s because BEP is a limited partnership and BEPC is a corporation so it has a broader exposure and now ETFs can invest. The price of BEPC is higher which may show its broader exposure.
Dividend yield is the same.
I have just newly came across it but it seems like a good grower for the future given its obvious investments in clean energy.
I hold BEP for a while now, it is a good investment I believe but it might be overvalued with current price. I remember reading that BEP and BEPC will be identical.
The following contains details about BEPC
I was mostly interested in tax impacts because the underlying company is the same for both BEP and BEPC. There are advantages such as index and ETF inclusion, but these cases do not make any changes for retail investors like us. In the presentation it says “BEPC shares are structured to be economically-equivalent to BEP units”.
I noticed one important difference. It says BEPC will not have return of capital distributions. When a distribution is return of capital, there is no withholding tax, so this reduces overall tax rate applied. But I don’t know if paying withholding tax changes the locally applied tax rate, if not return of capital makes a big difference compared to ordinary dividends.