Why Clearway Energy Is a Dividend Investor's Dream
Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) has been far from a dream dividend stock in recent years. The clean-energy company started well, growing its payout every quarter from its IPO in late 2013 through the end of 2018. However, that streak ended abruptly when one of Clearway's largest customers -- California electric utility Pacific Gas and Electric Company (PG&E) (NYSE: PCG) -- filed for bankruptcy in early 2019. That forced Clearway to slash its payout by 40% because its creditors restricted its access to the funds paid by PG&E until that company completed its restructuring.
That reset payout, which Clearway boosted by 5% earlier this year, is on a much firmer foundation because the company has been reducing its reliance on PG&E by making a steady stream of acquisitions. Add that factor to PG&E's recent reemergence from bankruptcy, and Clearway appears poised to become a dividend investor's dream stock in the coming years.
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Source Fool.com
