CWEN Stock Could Break Above $30

CWEN stock could break above $30 next week, if Q3 earnings meet analyst expectations. Whether or not that will happen is still anyone’s guess. But with lower interest rates taking some of the pressure off, long-term dividend investors might be interested in checking this one out.

After all, boasting a 6.25% dividend is nothing to sneeze at. And despite a few headwinds this year, the stock is still up around 28% over the past six months.

I actually opined on CWEN stock back in April, noting that larger macroeconomic forces could benefit the company. But with those high interest rates hanging over its head, I couldn’t pull the trigger. Had I done so, I’d be up more than 25%. Not to mention that generous dividend.

But now that we’re seeing interest rates pull back, I’m once again eyeing up CWEN stock.

CWEN Stock Could Break Above $30 —Again

If you’re unfamiliar, CWEN, or Clearway Energy (NYSE: CWEN), is the public affiliate of Clearway Energy Group. It’s one of the largest owners of clean energy generation assets in the U.S. with a portfolio that comprises approximately 11.4 GW of gross generating capacity in 26 states. It includes 9 GW of wind, solar, and energy storage and over 2.4 GW of dispatchable power generation providing critical grid reliability services.

Of course, things are a bit different today, compared to March, 2023. Perhaps most importantly, the slide in interest rates that companies like Clearway Energy desperately need to improve margins.

Of course, things are a bit different today, compared to March, 2023. Perhaps most importantly, the slide in interest rates that companies like Clearway Energy desperately need to improve margins.

Truth is, we know that demand for electricity is set to climb significantly for the foreseeable future, mostly as a result of increased usage from AI, crypto, and data center operations. And with interest rates coming down, this can only benefit a company like Clearway.

This isn’t to say Clearway is the best power producer and developer to own. But given an environment of increased demand and lower interest rates, there’s definitely an opportunity here to make a few bucks. Especially when you figure that 6.25% dividend into the equation.

If Clearway can simply meet analyst expectations, the stock should have no problem getting back up over $30 a share. And in fact, I would even argue that, as long as the company can keep its debt load in check, which was a risk concern earlier in the year, I see no reason why Clearway couldn’t cross the $40 level by this time next year. That would deliver an estimated gain of 48%. Not bad. Especially when you add that 6.25% dividend to the mix.

Of course, while there’s nothing wrong with a 48% gain, there are definitely other energy stocks that can give you more bang for your buck. Like this energy stock that the AI industry is flocking to.

It’s actually a provider of nuclear fuel for small modular reactors (SMRs), like the ones Google just bought to power its AI data centers. And while plenty of folks are fawning over SMR stocks now, the real money is in the fuel that’s required to run these things. And that’s why our research team just put together this short white paper on how these SMRs work, and more importantly, the single company providing the fuel for these things.

While I’m bullish on CWEN stock over the long haul, if you’re looking for a quicker way to make some serious cash, this SMR stock is the one you want.

To a new way of life and a new generation of wealth…

Jeff Siegel

Check us out on YouTube!

@JeffSiegel on Twitter

Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.

Want to hear more from Jeff? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on.