This 3.7%-Yielding Dividend Stock Is Becoming a Powerful Passive Income Producer

The best passive income-generating opportunities provide two things. They have an attractive current income yield and a payment that should steadily rise over time. That powerful one-two combination would enable investors to reach their income goals sooner.

Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) boasts both characteristics. The renewable energy producer currently pays a dividend that yields 3.7%, more than double the passive income produced by an S&P 500 index fund. Meanwhile, the company expects to grow its dividend payment toward the upper end of its 5%-to-8% annual target range through 2026. It's becoming a powerful way to collect passive income.

Clearway Energy owns a large-scale portfolio of wind energy, solar, and natural gas power plants. The company sells the power these facilities produce to utilities and large corporate buyers under long-term, fixed-rate power purchase agreements. 

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Source Fool.com