Investing $2,000 in each of these three energy stocks that offer dividends could potentially yield around $300 in passive income annually.
In the realm of energy stocks, three companies stand out for their focus on cash flow generation and dividend payments – Clearway Energy, Energy Transfer, and ConocoPhillips.
Clearway Energy, a U.S. clean power producer, is on a growth trajectory, expanding its portfolio of wind, solar, storage, and natural gas assets. With a clear path towards increasing its cash available for dividends, Clearway Energy aims to grow its dividends from $2.08 per share this year to more than $2.50 per share by 2027. As of July 25, 2025, Clearway Energy's current yield stands at 5.52%.
Clearway Energy's growth strategy revolves around expanding clean energy projects and strategic acquisitions, such as the recent purchase of the 109 MW Catalina Solar facility. The company's Q2 2025 financials show a 200% surge in net income to $12 million and a 7.1% increase in revenue to $392 million. Clearway Energy has raised its 2025 Cash Available for Distribution (CAFD) guidance to $405–$440 million and increased its quarterly dividend by 1.6%.
Energy Transfer, a leading energy infrastructure company, focuses on gathering, processing, transporting, storing, and exporting hydrocarbons. The company plans to increase its distribution by around 3% to 5% per year. This year, Energy Transfer expects to invest about $5 billion across new gas processing plants, additional export capacity, and a major new gas pipeline.
ConocoPhillips, one of the country's largest and lowest-cost oil and gas producers, is also generating substantial free cash flow. With crude oil currently in the upper $60s, ConocoPhillips is on track to deliver $6 billion of incremental free cash flow through 2029. The company aims to achieve its target of delivering dividend growth in the top 25% of companies in the S&P 500.
ConocoPhillips' growth strategy is centred around capital discipline, high-return projects, and cash flow focus. The company is expanding its production in Alaska and its global liquefied natural gas (LNG) business, which should contribute to its free cash flow and dividend growth.
In summary, Clearway Energy, Energy Transfer, and ConocoPhillips offer a combination of yield and growth, making them top choices for investors seeking to generate substantial passive dividend income each year. Their focus on cash flow generation and dividend payments aligns well with income-focused investors in renewable power and traditional energy sectors.
Investing in these three companies – Clearway Energy, Energy Transfer, and ConocoPhillips – can be an excellent choice for those interested in generating passive income through dividends. Clearway Energy, with its growth trajectory and plans to increase dividends from $2.08 per share this year to over $2.50 per share by 2027, demonstrates its financial commitment to its shareholders. Energy Transfer, a leading energy infrastructure company, aims to increase its distribution by around 3% to 5% per year and invest billions in new projects, further enhancing its cash flow and dividend prospects. ConocoPhillips, with its focus on capital discipline, high-return projects, and cash flow focus, seeks to deliver dividend growth in the top 25% of companies in the S&P 500, ensuring steady dividend income for its investors. Thus, personal-finance strategies that incorporate these firms could result in substantial money growth through dividend payments and business expansion.
