Companies often tend to fall into one of two camps. They either offer their investors enticing growth potential or have an alluring dividend yield.
Some stocks offer the best of both worlds with attractive dividends and clear growth prospects. Clearway Energy (CWEN.A 0.50%) (CWEN 0.67%), ONEOK (OKE 0.19%), and Mid-America Apartment Communities (MAA -0.81%) boast high-yield dividends, along with visible growth through at least 2028. The combination of income and upside potential makes them great stocks to buy and hold for the next few years.
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Plenty of power to continue increasing its high-yielding dividend
Clearway Energy is a leading owner of clean power assets such as natural gas power plants and renewable energy generating facilities. The company sells the electricity it produces under long-term power purchase agreements (PPAs) with utilities and large corporations. This strategy enables Clearway to generate very stable cash flow, supporting its high-yielding dividend (at 6%, it's several times higher than the S&P 500's 1.2% yield).
The company grows by investing in new clean-power assets. Clearway has secured several new renewable energy project investments slated to begin commercial service in 2026 and 2027. That powers the company's view that it will grow its cash available for dividends (CAFD) from $2.08 per share this year to a range of $2.50-$2.70 per share by 2027. This growth trajectory should support dividend increases within Clearway's 5%-8% annual target range through at least 2027.
Additionally, Clearway has identified about $420 million of projects currently under development by its parent company that it could acquire in the 2027-2028 time frame. That development partner has additional projects in its late-stage pipeline through 2029, as well as others that could enter commercial service by 2032. This pipeline of future investment opportunities further supports Clearway's target of delivering 5%-8%+ annual growth in its CAFD per share and dividend in 2028 and beyond.
Adding more fuel to its dividend-growth engine
ONEOK is a leading energy infrastructure company. Its pipelines, processing plants, storage terminals, and export facilities generate fairly stable cash flow backed by government-regulated rate structures and long-term, fixed-rate contracts. Those predictable revenue frameworks help support ONEOK's 5.5%-yielding dividend.
The energy midstream company has completed a series of acquisitions in recent years (Magellan, Medallion, and EnLink) that it's still in the process of integrating. ONEOK sees the potential of capturing up to $350 million in additional synergies from its Magellan merger in 2026 and beyond. It also expects to capture $125 million in additional savings from the EnLink and Medallion deals after this year, with up to another $200 million in longer-term potential.
ONEOK also has several organic expansion projects in the backlog. It's expanding its refined products system to the Denver area (target in-service date -- mid-year 2026); rebuilding its Medford Fractionator (fourth quarter 2026 and first quarter 2027); and building the Big Horn processing plant (mid-year 2027).
It also formed a joint venture with MPLX to build the Texas City Logistics Export Terminal and associated MBTC Pipeline (early 2028). On top of that, its Matterhorn JV recently approved the construction of the Eiger Express Pipeline (mid-2028). These growth drivers back ONEOK's view that it can grow its dividend at a 3% to 4% annual rate in the coming years, likely through at least 2028, given the timing of its current slate of expansion projects.
The $1 billion building boom
Mid-America Apartment Communities owns over 104,000 apartment units across the Sun Belt region. The real estate investment trust (REIT) benefits from durable and growing demand for rental housing, supporting stable occupancy and rising rents across its portfolio. It produces steadily rising rental income to back its more than 4%-yielding dividend.
Rent growth had slowed in recent years due to a post-pandemic apartment building boom across most of its markets. However, developers have started fewer new apartment projects in the last few years due to rising interest rates.
As a result, the wave of new apartments has peaked, paving the way for tighter market conditions as demand remains robust. That should drive a reacceleration in rental growth rates in the coming years.
Meanwhile, Mid-America Apartment Communities has capitalized on the development slowdown by approving several new projects. The REIT currently has eight new apartment communities under development (representing a nearly $1 billion commitment) that it expects to complete by 2028.
The company plans to start three to four new developments this year, one of which it has already approved. It currently controls enough land to start up to eight new projects in the future.
These developments will provide the landlord with incremental sources of growing rental income as they stabilize in the coming years. When combined with the rent growth of its existing portfolio, Mid-America should have ample capacity to continue increasing its dividend, which it has done for 15 consecutive years.
Visible growth for the next several years
Clearway Energy, ONEOK, and Mid-America Apartment Communities have secured investments that ensure visible growth for the next several years. They also pay attractive dividends, which should continue rising. This combination of secured growth and attractive income should give investors the confidence they need to buy and hold these stocks for the next few years.
