Clearway Energy Inc-C (NYSE:CWEN) stands out as a compelling choice for dividend investors, according to our Best Dividend Stocks screener. The company combines an attractive dividend yield with solid profitability and financial health, making it a noteworthy candidate for income-focused portfolios.
Dividend Strength
High Yield: CWEN offers a 5.57% dividend yield, well above the S&P 500 average of 2.37%. This makes it an appealing option for investors seeking steady income.
Reliable Growth: The company has increased its dividend at an average annual rate of 15.88% over the past years, demonstrating a commitment to rewarding shareholders.
Track Record: CWEN has paid dividends for at least 10 years without reductions in the last five years, indicating stability in its payout policy.
Profitability & Financial Health
Decent Profitability: With a Profitability Rating of 6/10, CWEN maintains healthy margins, including a Gross Margin of 64.65%, outperforming most peers in the renewable energy sector.
Moderate Financial Health: The company’s Health Rating of 5/10 reflects a manageable debt profile, though investors should note its elevated Debt-to-Equity ratio (3.72). Liquidity remains stable, with a Current Ratio of 1.52 and Quick Ratio of 1.42, suggesting no immediate solvency concerns.
Valuation & Growth Prospects
Reasonable Valuation: Despite a high P/E ratio (39.84), CWEN trades at a discount to industry peers based on Price/Free Cash Flow and Enterprise Value/EBITDA.
Earnings Growth: Analysts expect 31.41% annual EPS growth in the coming years, supporting future dividend sustainability.
Clearway Energy (NYSE:CWEN) offers a strong 5.57% dividend yield with reliable growth, solid profitability, and stable financials, making it a top pick for income investors.