There's a lot of uncertainty these days. Economists don't know how much tariffs and other policy changes will impact the economy. That can make it difficult to confidently invest.
However, some companies have a lot of visibility into their ability to grow in the coming years. NextEra Energy (NEE +0.55%) and Clearway Energy (CWEN 0.57%)(CWEN.A 0.72%) have shown clear visibility into their growth prospects through at least 2027. Because of that, they should have the power to continue growing their high-yielding dividends for the next few years. That visibility is why you can buy these high-yielding stocks without hesitation right now.
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High-powered earnings growth expected through 2027
NextEra Energy operates the largest electric utility in the country (FPL). It also owns one of the country's largest competitive clean energy businesses (NextEra Energy Resources). These entities generate very stable cash flow, backed by government-regulated rate structures and long-term, fixed-rate power purchase agreements.
Forecasters expect power demand in the country to surge over the coming years, fueled by artificial intelligence (AI) data centers, electric vehicles, the onshoring of manufacturing, and other catalysts. That should support rising power prices and the need for more power-generating capacity.
NYSE: NEE
Key Data Points
NextEra Energy expects to invest $120 billion into new energy infrastructure over the next four years. It has a large backlog of renewable energy projects underway, including significant solar power capacity installations at FPL. These dynamics drive the company's view that it can grow its earnings per share at or near the top end of its 6% to 8% annual target range through at least 2027.
The company also expects to increase its dividend -- which, at an over 3% yield, is more than double the S&P 500's (^GSPC +0.26%) level -- by around 10% annually though at least next year. Given the growth ahead for power demand, the company will likely be able to continue growing its earnings and dividend at healthy rates well beyond that time frame.
Clear visibility into its growth through 2027
Clearway Energy is one of the largest owners of clean power-generating assets in the country. It sells this power to utilities and large corporate customers under long-term PPAs. The cash flow from these contracts supports its more than 5.5%-yielding dividend.
NYSE: CWEN
Key Data Points
The company cashed in on the value of its thermal assets a few years ago and has been steadily recycling that capital into higher-returning renewable energy investments. It has committed to investing in projects that will enter commercial service through 2027. In addition, the company has signed higher-rate PPAs for some of its natural gas-fired power generating capacity for 2027.
These drivers give Clearway a clear line of sight to grow its cash available for distribution from $2.08 per share this year to more than $2.50 per share by 2027. The company has the financial flexibility to continue growing its cash flow at a mid-to-high single-digit rate beyond 2027 and a growing set of investment opportunities.
The company's clear growth pathway also gives it a lot of visibility into its ability to increase its dividend. Its target is to pay $1.76 per share in dividends this year, a 6.75% increase from last year's level. It's aiming for 6.5% dividend growth next year, and increases in the bottom end of its 5% to 8% annual target range in 2027 and beyond.
High-quality, high-yielding dividend stocks
NextEra Energy and Clearway Energy have lots of visibility into their ability to grow their earnings and dividends over the next few years. Because of that, they should generate solid total returns as they grow shareholder value. Given their lower risk profiles and visible return potential, you can confidently buy and hold these high-yielding dividend stocks through at least 2027.
