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).
PPAs are 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.
Because of their regular payouts, dividend stocks 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.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Brookfield Renewable Partners (NYSE:BEP) | $8.6 billion | 6.44% | Independent Power and Renewable Electricity Producers |
| Clearway Energy (NYSE:CWEN) | $4.4 billion | 4.75% | Independent Power and Renewable Electricity Producers |
| NextEra Energy (NYSE:NEE) | $179.7 billion | 2.63% | Electric Utilities |
Here's a closer look at these top-tier renewable energy dividend stocks.
1. Brookfield Renewable Partners
Brookfield Renewable Partners operates one of the largest global renewable energy platforms. As a subsidiary of the global alternative asset manager Brookfield Asset Management, Brookfield Renewable operates more than 7,000 renewable energy generation facilities across North and South America, Europe, and Asia.
NYSE: BEP
Key Data Points
With almost 40 gigawatts (GW) of electricity generation capacity, the company is already a global leader in hydroelectric power and is expanding its assets in wind, solar, and energy storage technologies. It's worth noting that primary revenue drivers like hydro, nuclear, and storage weren't affected by U.S. legislation that curbed subsidies for wind and solar power.
Brookfield Renewable expects to increase its cash flow at a brisk pace through 2025. It also has an extensive advanced-stage pipeline of projects under development that could add 24 GW to its generation capacity.
NYSE: CWEN
Key Data Points
Clearway expects to annually increase its dividend (currently about 5%) by 5% to 8% annually 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 2025 to sell power to Microsoft (MSFT +1.34%) 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
NextEra's subsidiary XPLR Infrastructure (XIFR +1.93%) recently suspended its dividend, but the parent company is still going great guns when it comes to sharing the wealth. For more than 30 years, NextEra has raised its payout every year, increasing it at a 10% compound annual rate since 2007. Its yield in late 2025 was 2.6%, more than twice the average S&P 500 figure.
NYSE: NEE
Key Data Points
NextEra, a Fortune 200 company that owns the largest utility in the United States (Florida Power & Light), has become a global leader in the wind and solar industry. The Florida-based utility isn't exactly resting on its laurels either, spending $2 billion on capital expenditures (capex) and adding 1.1 GW of solar, wind, and storage during the second quarter of 2025.
The company announced in October 2025 that it had signed a 25-year PPA with Google to reopen the Duane Arnold nuclear power plant as early as late 2028. The facility, which was the only nuclear plant in Iowa, had stopped operating in 2020. The deal still needs to be approved by federal regulators.
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 energy 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 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 2019-2022 time frame to 14 GW annually in 2025-2030.
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.
Pros and cons of renewable energy dividend stocks
Given the world's apparently insatiable demand for more power generation, renewable energy stocks would appear to be the wave of the future for several reasons, but they also have their downsides.
Pros
- Wind and solar energy are cheaper sources of power than new fossil fuel plants.
- Renewable sources of energy will help mitigate the worst effects of climate change.
- Energy sources like wind and solar power aren't subject to volatile fuel prices.
- The energy transition has the potential to create millions of new jobs offering good wages.
- The largest renewable energy companies are well-established businesses that can sustain solid dividend payments.
Cons
- While wind and solar generation are booming, power infrastructure to support these new sources of electricity is often lacking.
- The federal government has shifted from appropriating hundreds of billions to encourage renewable energy to attempting to block new solar and wind projects.
- Much of the current renewable energy boom is based on a massive and highly speculative buildout of data centers.
- Materials used in renewable energy infrastructure, such as batteries and wind turbines, rely on rare-earth materials that China has used to apply political pressure on other countries.
How to invest in renewable energy dividend stocks
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Related investing topics
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 expand rapidly, 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 potential that makes 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.
FAQ
About the Author
