Clearway Energy, Inc. (NYSE:CWEN) is a major player in the clean energy sector, operating one of the largest renewable energy portfolios in the US, which includes solar, wind, energy storage, and natural gas projects. The company sells electricity through long-term, fixed-rate contracts, helping it generate steady cash flows that support its dividend payments.Steady Payouts, Low Profile: Meet This Lesser-Known Dividend Player

Despite its operations, Clearway Energy, Inc. (NYSE:CWEN) remains relatively under-the-radar among dividend-focused investors, largely because it operates quietly behind the scenes. However, it has a strong track record of consistent dividend payments and maintains a healthy cash position. In Q1 2025, it reported $95 million in operating cash flow and $77 million in cash available for distribution (CAFD), both up from the same period in 2024.

Clearway Energy, Inc. (NYSE:CWEN) faced turbulence in 2023 and 2024 amid rising interest rates and concerns about slowing renewable energy demand. While the sector has indeed felt the pressure, fears about the company's business may be overblown. Its revenues are backed by long-term contracts, and demand for clean energy from utilities remains strong.

With access to capital and a positive long-term outlook, Clearway Energy, Inc. (NYSE:CWEN) expects to grow its earnings and aims to boost its dividend by 5% to 8% annually in the coming years. On top of that, the stock maintains a healthy dividend yield, which stands at 5.76%, as of May 23. CWEN is up by nearly 16% in 2025 so far.

While we acknowledge the potential of CWEN as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than CWEN but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

READ MORE: 10 Unstoppable Dividend Stocks to Buy Now and 25 High Dividend Stocks Being Targeted By Short Sellers

Disclosure. None.

View Comments