Renewable energy dividend stocks offer investors the opportunity to receive dividend income while supporting the global transition to zero-emission power sources.
Many renewable energy companies build or develop electricity-generating assets such as wind farms and solar power systems, which generate reliable revenue through power purchase agreements (PPAs) -- commitments from legacy electric utility companies to purchase electricity from renewable energy producers at fixed rates. The industry norm of establishing long-term PPAs enables renewable energy producers to generate steady cash flows, which are a general prerequisite to reliable dividend payments.
Dividend stocks, or the stocks of companies that pay reliable and attractive dividends, can be a great addition to a portfolio. Most dividend payments are disbursed quarterly, and investors can either reinvest or spend the money received.
Dividend stocks, because of their regular payouts, routinely produce above-average total returns. Combine that with the growth potential of the renewable energy sector, and the industry's top dividend stocks could pay extremely attractive returns in the coming years.
Here's a closer look at three of the best dividend stocks in the renewable energy industry.
Top renewable energy dividend stocks to buy now
Although several renewable energy companies pay a dividend, the following companies stand out for their combination of solid financial standing, attractive dividend yield, and strong growth potential:
Here's a closer look at these top-tier renewable energy dividend stocks:
1. Brookfield Renewable Partners
2. Clearway Energy
NYSE: CWEN
Key Data Points
Clearway Energy operates a large-scale U.S. renewable energy portfolio, with almost 12 GW of electricity generation capacity. The company also operates about 2.8 GW of natural gas generation facilities and a portfolio of district energy systems, which are centralized generation facilities that heat and cool building networks.
Clearway Energy primarily sells electric power under long-term PPAs, enabling it to generate stable cash flows to reliably pay dividends.
Clearway expects to annually increase its 5.8% dividend by 5% to 8% in the coming years. The company benefits from its close relationships with Clearway Energy Group (CEG), a separate entity that develops renewable energy projects, and fund manager Global Infrastructure Partners, which invests capital in Clearway Energy.
CEG is developing a pipeline of 30 GW of renewable energy, giving it access to an attractive range of investment and acquisition opportunities. Although wildfire and credit risks led the company to cancel a 200-megawatt solar project in Hawaii, Clearway reached a deal in April to sell power to Microsoft (MSFT +0.56%) from its planned 335-megawatt Mount Storm wind farm project in West Virginia. Even though recent U.S. legislation has thrown the renewable energy industry into turmoil, the company's solid financial standing, which includes a reasonable dividend payout ratio and ample liquidity, supports its continued growth.
3. NextEra Energy
NYSE: NEE
Key Data Points
What to know about renewable energy stocks
Despite regulatory headwinds and a potential $100 trillion investment needed for a full transition to a low-carbon future, the outlook for renewable energy projects is promising. The renewable energy industry is still emerging. A few key points:
- Solar costs are falling rapidly. Solar made up more than 69% of new capacity during the first quarter of 2025. Average annual solar capacity additions in the U.S. are projected to rise by 40 GW to 45 GW per year through 2028.
- Lithium-ion battery pack prices fell 20% between 2023 and 2024 to a record low of $115 per kilowatt-hour.
- The Lawrence Berkeley National Laboratory predicts 17% to 35% reductions in the costs of wind energy by 2035. Average annual wind additions in the U.S. are projected to rise from 10 GW in the 2019-22 time frame to 14 GW annually in 2025-30.
Legislation aside, the economic benefits of wind and solar make it likely that renewable energy dividend stocks will pay attractive returns in the coming decade.
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Great dividends in renewable energy
The renewable energy industry could create many opportunities for income investors in the coming years. The sector appears poised to rapidly expand, which should enable companies such as Brookfield Renewable, Clearway Energy, and NextEra Energy to continue growing as leaders of the pack.
These stocks' attractive dividend yields offer upside potentials that make this trio stand out as excellent renewable energy dividend stocks. You can buy and hold the stocks of these companies for the long term since they are likely to steadily generate more income for years.
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