Four High-Yield Dividend Stocks for Passive Income
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 22 2026
0mins
Should l Buy CWEN?
Source: Yahoo Finance
- Clean Energy Leader: Clearway Energy (CWEN) owns a large portfolio of renewable energy assets and expects a 7% to 8% compound annual growth rate in cash flow per share through 2030, which supports its 4.7% dividend yield and enhances its competitive position in the clean energy market.
- Stable Cash Flow: Energy Transfer (ET), a leader in energy midstream infrastructure, generates about 90% of its earnings from fee-based revenue frameworks and plans to invest at least $5 billion this year in expansion projects, driving its 7.1% dividend growth by 3% to 5% annually.
- Real Estate Investment Trust: Realty Income (O) owns a diversified portfolio of properties secured by long-term net leases, providing stable cash flow that supports its 4.9% monthly dividend, and has increased its dividend for 113 consecutive quarters, showcasing strong financial stability.
- Strong Free Cash Flow: Verizon (VZ) expects to generate $21.5 billion in free cash flow this year, approximately $10 billion above its annual dividend payments, enhancing its debt repayment capacity and supporting future dividend growth, extending its growth streak to 19 years.
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Analyst Views on CWEN
Wall Street analysts forecast CWEN stock price to rise
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 37.940
Low
38.00
Averages
40.50
High
50.00
Current: 37.940
Low
38.00
Averages
40.50
High
50.00
About CWEN
Clearway Energy, Inc. is the owner of clean energy generation assets. It invests in energy infrastructure and focuses on investments in clean energy and owns sustainable and long-term contracted assets across North America. Its portfolio comprises approximately 12.7 gigawatts (GW) of gross capacity in 27 states, including 9.9 GW of wind, solar, and energy storage and over 2.8 GW of dispatchable power generation providing critical grid reliability services. Its operating facilities include Carlsbad, El Segundo, GenConn Devon, GenConn Middletown, Marsh Landing and Walnut Creek. Its utility-scale solar projects include Agua Caliente, Alpine, Avenal, Avra Valley, Blythe, Daggett 3, Desert Sunlight 250, Kansas South, and others. Its wind projects include Black Rock, Buffalo Bear, Cedro Hill, and others. It also operates the 137-megawatt (MW) Tuolumne Wind Project in Klickitat County, Washington and the 109 MW Catalina Solar facility in Kern County, California.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Clearway Energy to Unify Share Classes Pending Vote
- Shareholder Vote Plan: Clearway Energy (CWEN) intends to hold a shareholder vote at the 2026 annual meeting to unify its public shares into a single class, aiming to streamline shareholder structure and enhance corporate governance efficiency.
- Stock Conversion Proposal: The board has approved a proposal to amend the company's charter, converting each share of Class A common stock (par value $0.01) into one share of Class C common stock (par value $0.01), which will help improve transparency of shareholder equity.
- Automatic Conversion Mechanism: Under the terms of the charter amendment, the conversion will occur automatically at 12:01 a.m. Eastern Time on the second business day following the filing of the charter amendment, ensuring convenience and timeliness for shareholders during the conversion process.
- Future Growth Outlook: Clearway Energy projects a cash available for distribution (CAFD) of $2.90 to $3.10 per share by 2030 while expanding partnerships with hyperscalers, indicating the company's growth potential in the renewable energy sector.
See More
Clearway Energy Proposes Simplification of Stock Structure
- Stock Structure Simplification: Clearway Energy proposes converting its Class A common stock into Class C common stock to eliminate the complexities of a dual-class structure, thereby enhancing stock liquidity and attracting a broader investor base.
- Positive Market Response: The last reported price for Class A common stock was $35.57 per share, while Class C common stock was priced at $37.94, indicating a 6.7% premium for Class C shares, reflecting market approval of the proposed simplification.
- Voting Rights Protection: During the Class A Conversion, Clearway Energy Group LLC will enter into a Voting Trust Agreement to preserve the relative voting power of public shareholders, thereby enhancing shareholder confidence in corporate governance.
- Tax Implications Considered: The conversion is intended to qualify as a tax-free exchange under U.S. federal tax law, although the company has not sought IRS rulings, which introduces uncertainty that may affect shareholder decisions.
See More
Investors Turn to High-Yield Stocks Amid Market Uncertainty
- Investment Strategy in Turbulent Markets: During times of market turbulence and uncertainty, many investors are turning to high-dividend stocks, which typically have high free cash flows and reward shareholders with substantial dividends, thereby enhancing investor confidence and stability.
- High-Yield Stock Analysis: Analysts have rated three high-yield stocks in the utilities sector, including Edison International (EIX), AES Corp (AES), and Clearway Energy Inc (CWEN), which are favored for their stable cash flows and dividend payments, indicating their investment potential in uncertain market conditions.
- Importance of Dividend Payments: High-dividend stocks not only provide a stable income source for investors but also offer relative safety during market fluctuations, attracting investors seeking to preserve capital, especially as economic uncertainty increases.
- Analyst Accuracy: The ratings from the most accurate analysts on these high-yield stocks highlight their significance in the current economic environment, allowing investors to make more informed investment decisions, which could further enhance the market performance of these companies.
See More
Clearway Energy and Chevron Show Strong Dividend Growth Potential
- Clean Energy Growth Potential: Clearway Energy expects to grow its free cash flow per share at a compound annual rate of 7% to 8% through 2030, supported by long-term power purchase agreements (PPAs) that provide stable cash flow, thus sustaining its 4.7% dividend yield.
- Stable Earnings from Oil Giant: Chevron anticipates adding $12.5 billion to its annual free cash flow this year, primarily driven by its merger with Hess and expansion projects, demonstrating strong financial resilience as it can cover its capital spending and 3.9% dividend even at oil prices below $50.
- Infrastructure Investment Outlook: Kinder Morgan has $10 billion in growth capital projects underway, expected to be completed by 2030, which will support its stable 3.6% dividend yield and drive future cash flow growth.
- Demand-Driven Energy Sector: With ongoing growth in demand for clean energy and natural gas, the high-yield dividends from Clearway, Chevron, and Kinder Morgan are expected to continue increasing, making them ideal long-term investment choices.
See More
High-Yield Dividend Prospects in Energy Stocks
- Clean Energy Growth: Clearway Energy, one of the largest owners of clean power assets in the U.S., expects to grow its free cash flow per share at a compound annual rate of 7% to 8% through 2030, supporting its 4.7% dividend yield and enhancing its competitive position in the renewable energy market.
- Oil Giant Cash Flow: Chevron anticipates adding $12.5 billion to its annual free cash flow this year, driven by its merger with Hess and expansion projects, and expects to achieve over 10% annual free cash flow growth at $70 oil, ensuring its 39 consecutive years of dividend increases.
- Infrastructure Stability: Kinder Morgan, operating the largest gas pipeline transmission network in the U.S., has $10 billion in growth capital projects expected to complete by 2030, which will support its 3.6% dividend yield and drive future cash flow growth.
- Long-Term Investment Potential: All three companies are making strategic investments in clean energy and infrastructure, showcasing strong long-term growth potential, making them ideal dividend stocks for long-term holding to generate passive income.
See More
Clearway Energy, Inc. Q4 2025 Earnings Call Highlights
- Performance Exceeds Expectations: Clearway Energy reported a total cash available for distribution of $430 million in 2025, surpassing the midpoint of its original guidance range, demonstrating strong execution that is expected to lay the groundwork for future investments and shareholder returns.
- Project Expansion: The company added 1.3 gigawatts of value-enhancing projects in 2025 and signed approximately 2 gigawatts of new power purchase agreements, indicating robust demand from data centers and utilities that is likely to drive future revenue growth.
- Long-Term Goals Reaffirmed: Management reaffirmed 2026 cash available for distribution guidance of $470 million to $510 million and maintained the 2030 target of $2.90 to $3.10 per share, reflecting confidence in long-term growth prospects.
- Capital Structure Optimization: The company successfully issued $600 million in senior unsecured notes in January 2026, with stock prices rising over 30%, indicating market recognition of its capital operations, and plans to continue optimizing capital allocation to support sustainable growth.
See More
Clearway Energy to Unify Share Classes Pending Vote
- Shareholder Vote Plan: Clearway Energy (CWEN) intends to hold a shareholder vote at the 2026 annual meeting to unify its public shares into a single class, aiming to streamline shareholder structure and enhance corporate governance efficiency.
- Stock Conversion Proposal: The board has approved a proposal to amend the company's charter, converting each share of Class A common stock (par value $0.01) into one share of Class C common stock (par value $0.01), which will help improve transparency of shareholder equity.
- Automatic Conversion Mechanism: Under the terms of the charter amendment, the conversion will occur automatically at 12:01 a.m. Eastern Time on the second business day following the filing of the charter amendment, ensuring convenience and timeliness for shareholders during the conversion process.
- Future Growth Outlook: Clearway Energy projects a cash available for distribution (CAFD) of $2.90 to $3.10 per share by 2030 while expanding partnerships with hyperscalers, indicating the company's growth potential in the renewable energy sector.
See More
Clearway Energy Proposes Simplification of Stock Structure
- Stock Structure Simplification: Clearway Energy proposes converting its Class A common stock into Class C common stock to eliminate the complexities of a dual-class structure, thereby enhancing stock liquidity and attracting a broader investor base.
- Positive Market Response: The last reported price for Class A common stock was $35.57 per share, while Class C common stock was priced at $37.94, indicating a 6.7% premium for Class C shares, reflecting market approval of the proposed simplification.
- Voting Rights Protection: During the Class A Conversion, Clearway Energy Group LLC will enter into a Voting Trust Agreement to preserve the relative voting power of public shareholders, thereby enhancing shareholder confidence in corporate governance.
- Tax Implications Considered: The conversion is intended to qualify as a tax-free exchange under U.S. federal tax law, although the company has not sought IRS rulings, which introduces uncertainty that may affect shareholder decisions.
See More
Investors Turn to High-Yield Stocks Amid Market Uncertainty
- Investment Strategy in Turbulent Markets: During times of market turbulence and uncertainty, many investors are turning to high-dividend stocks, which typically have high free cash flows and reward shareholders with substantial dividends, thereby enhancing investor confidence and stability.
- High-Yield Stock Analysis: Analysts have rated three high-yield stocks in the utilities sector, including Edison International (EIX), AES Corp (AES), and Clearway Energy Inc (CWEN), which are favored for their stable cash flows and dividend payments, indicating their investment potential in uncertain market conditions.
- Importance of Dividend Payments: High-dividend stocks not only provide a stable income source for investors but also offer relative safety during market fluctuations, attracting investors seeking to preserve capital, especially as economic uncertainty increases.
- Analyst Accuracy: The ratings from the most accurate analysts on these high-yield stocks highlight their significance in the current economic environment, allowing investors to make more informed investment decisions, which could further enhance the market performance of these companies.
See More
Clearway Energy and Chevron Show Strong Dividend Growth Potential
- Clean Energy Growth Potential: Clearway Energy expects to grow its free cash flow per share at a compound annual rate of 7% to 8% through 2030, supported by long-term power purchase agreements (PPAs) that provide stable cash flow, thus sustaining its 4.7% dividend yield.
- Stable Earnings from Oil Giant: Chevron anticipates adding $12.5 billion to its annual free cash flow this year, primarily driven by its merger with Hess and expansion projects, demonstrating strong financial resilience as it can cover its capital spending and 3.9% dividend even at oil prices below $50.
- Infrastructure Investment Outlook: Kinder Morgan has $10 billion in growth capital projects underway, expected to be completed by 2030, which will support its stable 3.6% dividend yield and drive future cash flow growth.
- Demand-Driven Energy Sector: With ongoing growth in demand for clean energy and natural gas, the high-yield dividends from Clearway, Chevron, and Kinder Morgan are expected to continue increasing, making them ideal long-term investment choices.
See More
High-Yield Dividend Prospects in Energy Stocks
- Clean Energy Growth: Clearway Energy, one of the largest owners of clean power assets in the U.S., expects to grow its free cash flow per share at a compound annual rate of 7% to 8% through 2030, supporting its 4.7% dividend yield and enhancing its competitive position in the renewable energy market.
- Oil Giant Cash Flow: Chevron anticipates adding $12.5 billion to its annual free cash flow this year, driven by its merger with Hess and expansion projects, and expects to achieve over 10% annual free cash flow growth at $70 oil, ensuring its 39 consecutive years of dividend increases.
- Infrastructure Stability: Kinder Morgan, operating the largest gas pipeline transmission network in the U.S., has $10 billion in growth capital projects expected to complete by 2030, which will support its 3.6% dividend yield and drive future cash flow growth.
- Long-Term Investment Potential: All three companies are making strategic investments in clean energy and infrastructure, showcasing strong long-term growth potential, making them ideal dividend stocks for long-term holding to generate passive income.
See More
Clearway Energy, Inc. Q4 2025 Earnings Call Highlights
- Performance Exceeds Expectations: Clearway Energy reported a total cash available for distribution of $430 million in 2025, surpassing the midpoint of its original guidance range, demonstrating strong execution that is expected to lay the groundwork for future investments and shareholder returns.
- Project Expansion: The company added 1.3 gigawatts of value-enhancing projects in 2025 and signed approximately 2 gigawatts of new power purchase agreements, indicating robust demand from data centers and utilities that is likely to drive future revenue growth.
- Long-Term Goals Reaffirmed: Management reaffirmed 2026 cash available for distribution guidance of $470 million to $510 million and maintained the 2030 target of $2.90 to $3.10 per share, reflecting confidence in long-term growth prospects.
- Capital Structure Optimization: The company successfully issued $600 million in senior unsecured notes in January 2026, with stock prices rising over 30%, indicating market recognition of its capital operations, and plans to continue optimizing capital allocation to support sustainable growth.
See More
