The stock market, as we’ve been reminded just recently, can be volatile. Dividend stocks allow investors seeking passive income to protect their portfolios from market volatility. Dividend-paying companies offer investors a consistent stream of income. The best dividend stocks often belong to stable, mature companies that generate consistent profits and have an established history of paying dividends to shareholders.
While higher dividend yields are always appealing to passive income investors, there are more factors to consider – such as a history of paying dividends, strong fundamentals, and a sustainable business model. Let’s take a look at three such dividend stocks to grab now.
Dividend Stock #1: Clearway Energy
Clearway Energy (CWEN) is a leading renewable energy company focused on clean energy projects in the U.S. Founded in 2018, the company has a diverse portfolio that includes solar, energy, and wind storage assets.
Valued at $4.7 billion, CWEN stock has dipped 14.6% YTD, compared to the S&P 500 Index’s ($SPX)gain of 6.3%.
Clearway pays an annual dividend yield of 7.3%, which is significantly higher than the utility sector average of 3.6%. While the yield appears to be attractive, the payout ratio (which measures the amount of earnings to be paid out as dividends) is 228%.
This may raise questions about the company’s ability to sustain dividend payments in the future. However, the company
