1.NextEra Energy
NEE (NYSE)
NextEra Energy (NEE) stands out as the largest utility in the U.S., boasting a significant renewable generation portfolio that enhances its scale and earnings visibility. With a solid dividend yield of 2.71% and an impressive one-year return of 21.15%, it remains an attractive option for investors seeking both stability and growth. Analysts maintain a consensus rating of Buy, with a 12-month price target range between $78.00 and $100.00, reflecting the company’s strong position in the renewable energy sector.
Pros:
- Strong dividend growth history
- Diverse energy portfolio
Cons:
- High capital expenditure requirements
- Market volatility
2.Clearway Energy
CWEN (NYSE)
Clearway Energy (CWEN) operates approximately 6,000 net MW of wind and solar projects across the U.S., showcasing significant growth potential. With a current dividend yield of 5.02% and a one-year return of 32.31%, CWEN is an attractive choice for investors looking for stable income from a financially healthy company. Analysts rate the stock as a B+, with a 12-month price target range of $34.00 to $50.00, indicating optimism about its future performance.
Pros:
- Stable dividend income
- Growth potential in renewable energy
Cons:
- Weather-driven output variability
- Interest rate sensitivity
3.Brookfield Renewable Partners
BEP (NYSE)
Brookfield Renewable Partners (BEP) boasts a diverse portfolio of wind, solar, and hydro assets, positioning itself as a strong player in the renewable energy sector. With a robust dividend yield of 5.20% and a one-year return of 24.11%, BEP demonstrates significant growth potential despite a challenging five-year performance of -42.23%. Analysts have a median price target of $35.00, with ratings from firms like UBS and Morgan Stanley suggesting a continued positive outlook.
Pros:
- Diverse renewable energy portfolio
- Strong market presence
Cons:
- High debt levels
- Market volatility
4.First Solar
FSLR (NASDAQ)
First Solar (FSLR) stands out as a leading solar panel manufacturer, actively expanding its footprint in the U.S. renewable energy sector. With impressive 1-year and 5-year returns of 29.53% and 127.98%, respectively, the stock has demonstrated strong growth, making it an attractive option for long-term investors. Analysts maintain a median 12-month price target of $282.50, reflecting solid confidence in FSLR’s continued performance.
Pros:
- Leading position in solar manufacturing
- Strong growth potential
Cons:
- High capital requirements
- Market fluctuations
5.HA Sustainable Infrastructure Capital
HASI (NYSE)
HA Sustainable Infrastructure Capital (HASI) focuses on investing in energy efficiency and sustainable infrastructure assets across the United States. With a current dividend yield of 5.19% and an impressive one-year return of 29.28%, HASI presents a potential opportunity for investors seeking reliable income and growth. Analysts maintain a positive outlook with a median 12-month price target of $48.50, supported by strong ratings from firms like Wells Fargo and Morgan Stanley.
Pros:
- Focus on sustainable infrastructure
- Potential for growth in climate solutions
Cons:
- High volatility in earnings
- Dependence on market conditions
6.Quanta Services
PWR (NYSE)
Quanta Services (PWR) stands out as a premier provider of electric power infrastructure and smart-grid projects, making it a compelling choice within the renewable energy sector. The stock has delivered impressive 1-year and 5-year returns of 37.69% and 467.35%, respectively, and boasts a modest dividend yield of 0.09%. Analysts have a median 12-month price target of $495, with a B- rating, reflecting optimism about its growth potential.
Pros:
- Strong growth in infrastructure services
- Diverse service offerings
Cons:
- High competition in the sector
- Market sensitivity
7.Ormat Technologies
ORA (NYSE)
Ormat Technologies (ORA) focuses on geothermal and solar power projects across the U.S., making it a strong choice for environmentally-conscious investors. With a notable 1-year return of 79.10% and a dividend yield of approximately 0.45%, it showcases impressive growth potential. Analysts are optimistic, with a consensus rating of Buy and a median price target set at $125, signaling confidence in its future performance.
Pros:
- Strong growth in renewable energy sector
- Diverse international operations
Cons:
- Dependence on geothermal energy market
- Regulatory risks
8.WEC Energy Group
WEC (NYSE)
WEC Energy Group stands out as a leading regulated utility, bolstered by its strong presence in renewable operations and a promising outlook for growth. With a current dividend yield of 3.47% and an anticipated upside of 15.5%, the stock has garnered a median price target of $124.00 from analysts, who rate it a Moderate Buy. This company is well-positioned for sustainable profitability, projecting revenues of $9.88 billion by 2026, reflecting a solid increase in its financial health.
Pros:
- Stable utility operations
- Strong dividend history
Cons:
- High debt-to-equity ratio
- Regulatory risks
Final Words
As you consider your investment options in renewable energy stocks this January, remember to evaluate companies like Clearway Energy for their growth potential and dividend yields. Take time to compare different opportunities and conduct your own research to make informed decisions that align with your financial goals.
Frequently Asked Questions
Clearway Energy operates approximately 6,000 net MW of wind and solar projects in the US. The stock is listed on the NYSE with a current price of $32.84 and a market cap of $6.69 billion.
Clearway Energy has a dividend yield of 5.02%, with distributions paid quarterly. The next dividend is set at $0.4528.
Clearway Energy is rated as a Hold by Zacks, with a VGM Score of B. It may also appeal to growth investors due to a projected year-over-year earnings growth of 194.7% for the current fiscal year.
Clearway Energy has shown a 1-year return of 32.31% and a 3-month return of 5.43%. However, it has faced a YTD return of -3.30%.
Investing in Clearway Energy carries risks such as weather-driven output variability and interest rate sensitivity. Additionally, the company operates in a capital-intensive industry, which may impact its growth financing.
When investing in renewable energy stocks, consider the company's growth potential, market position, and financial health. Additionally, evaluate their dividend history and the overall market demand for renewable energy.


