Want $1,000 in dividend income? Here’s how much you need to invest in Brookfield Renewable stock.

Brookfield Renewables (BEPC 0.86%) (BEP 0.98%) has a great FOLLOW-UP dividend payment record. The world’s largest producer of renewable energy has been paying them since 2001. It has steadily increased its payments over the years (a compound annual rate of 6%), including delivering at least 5% annual growth in each of the last 13 years.

The renewable energy dividend stock at present offers a high dividend yield (over 5% compared to less than 1.5% for S&P 500). Because of this, investors can generate a lot of dividend income from Brookfield Renewable.

Brookfield Renewable currently pays a quarterly dividend of $0.355 per share ($1.42 annually). At this rate, you’d need to own more than 704 shares of Brookfield Renewable to generate $1,000 in dividend income each year. Given that the stock price recently topped $28 each, you’d need to invest about $19,825 in the stock to reach that level of annual income.

That’s a lot less money than you’d need to invest in one S&P 500 Index Fund to generate the same quantity of annual income from dividends. Given the much lower yield (less than 1.3%), should invest over $77,500.

Brookfield Renewable can easily sustain its high-yielding dividend. The company generates very stable cash flow. It has signed long-term power purchase agreements with utilities and large corporate buyers for about 90 percent of the power it produces. Those agreements provide she with steady and growing cash flow (about 70% of its contracts link power rates to inflation). Brookfield Renewable also has a strong investment grade balance sheet.

The company expects to grow its high-yield payouts at a healthy pace in the futuretargeting annual growth of 5% to 9%. Brookfield should you have no problems achieving this goal. It has a lot of visibility on its growth prospects, driven by inflation-linked rate increases, development projects and increased acquisitions. These factors support its view that it can grow its cash flow per share by more than 10% annually through 2028. With a high yield payout and higher earnings growth, Brookfield Renewable is an excellent option for those looking to generate passive income.