Long-term investors seek the golden egg of profit growth to unlock sustained success in the stock market. The stars of this show that draw the eye of savvy investors are NextEra Energy (NYSE: NEE), Clearway Energy (NYSE: CWEN, CWEN.A), and Ford (NYSE: F). These companies are under the Fool.com spotlight as top contenders with promising growth trajectories that beckon prospective investors to seize the moment.

Riding the Wave of Utility Appeal: NextEra Energy’s Dividend Surge

Reuben Gregg Brewer (NextEra Energy): In the often sober world of utilities, NextEra Energy historically hasn’t been the belle of the ball in terms of dividend yields. Surprisingly, the current 3.6% yield, though not stunning, is hovering near a decade high for the company. This uptick suggests a ripe opportunity ripe for the picking.

NextEra Energy boasts a blend of the traditional – a regulated utility arm (focusing significantly on Florida Power & Light) – and the avant-garde – a rapidly expanding renewable energy division (securing a top spot as a global solar and wind power producer). This unique combination has propelled NextEra Energy’s dividend to an impressive annual growth rate of 10% over the past decade, a figure that overshadows industry norms. This curious amalgamation renders this stock a rare gem of dividend growth in a sector often characterized as drab.

The implications for dividend enthusiasts are substantial. With its historically generous yield, NextEra Energy injects diversity into portfolios typically lacking in utility stock exposure. Forecasts predict another year of robust 10% dividend growth in 2024 (a trend expected to extend through 2026), along with substantial earnings growth (6% to 8% annually until at least 2026). In essence, the horizon gleams brightly. Snag this chance to acquire a stellar dividend growth utility at an enticing price, for it may not swing by again anytime soon.

Paving the Path to Promising Returns: Clearway Energy’s Dividend Drive

Matt DiLallo (Clearway Energy): Positioned as one of the heavyweight players in renewable energy generation nationwide, Clearway Energy operates a dynamic portfolio that includes environmentally sustainable natural gas power assets. The bedrock of the company’s cash flow stability is its clean energy ventures, underpinned by fixed-rate power purchase agreements with utilities and major corporate entities.

Clearway leverages this steady financial inflow to offer an enticing dividend (currently yielding 7.1%) while also channeling funds into fresh renewable energy endeavors. The company’s roadmap charts a course towards enhancing its high-yielding payouts to the upper echelon of its 5% to 8% annual growth target range until 2026.

The linchpin of this strategy is Clearway’s capital reallocation tactic. By divesting its thermal assets in 2022, securing around $1.3 billion in cash proceeds, Clearway has embarked on a trajectory of reinvesting these funds into more lucrative renewable energy projects. Last year alone, it allocated $215 million towards wind, solar, storage, and wind repowering initiatives – expected to commence power generation and cash influx this year. Furthermore, potential deals are in the pipeline to deploy the remaining proceeds into high-return renewable ventures, setting a course to escalate its dividend-available cash from $342 million last year to $435 million in the foreseeable future.

Looking beyond 2026, Clearway’s growth prospects are coming into view clearly. Recent contract renegotiations for its natural gas power plants signal rates that could buttress the lower band of its dividend growth target range by 2027. Fuelled by the crescendoing demand for renewable energy, Clearway is set to tap into a cornucopia of new investment horizons. With the parent company embarking on an expansive program of project development, Clearway is poised to bolster existing wind farm capacities through repowering projects and the addition of battery storage capabilities.

Despite a 30% plunge in share price in the last year spurred by rising interest rates, Clearway’s trajectory teems with promise, buoyed by the renewable energy megatrend, making it a compelling long-haul investment proposition at this juncture.

Navigating the Automotive Landscape: Ford Motor Company in Focus

Neha Chamaria (Ford Motor): The past three months have seen Ford’s stock surge by nearly 19%, hinting at a potential bull run for the automaker, propelled by the latest company updates.

Ford’s recent financial report for the fourth quarter and full year of 2023 showcased robust performance amidst macroeconomic headwinds and internal operational challenges.

Ford Revs Up Revenue Growth and Profit in 2023, Eyes Profitable Future