Three Income-Generating Equities Poised for 26%+ Growth: A Data Center Boom Story

The Confluence of Dividends and Capital Appreciation

The investment thesis that high distributions must come at the expense of share price appreciation has proven outdated. Today’s market offers compelling opportunities where shareholders can capture both meaningful yield and substantial price momentum. Three infrastructure and real estate companies stand out as particularly attractive given their exposure to structural growth drivers and analyst optimism heading into 2026.

Clearwater Energy: Renewable Capacity Meets Data Center Demand

Clearwater Energy operates as one of America’s preeminent renewable energy platforms, maintaining wind, solar, and battery storage facilities across 27 states with approximately 12.7 gigawatts of installed capacity. The company maintains dual share classes: Class A shares (CWEN.A) yielding just under 6% and Class C shares (CWEN) offering 5.6% forward distributions.

The case for continued appreciation rests on compelling operational trends. Third-quarter 2025 earnings growth exceeded 100% year-over-year, driven substantially by surging demand for electricity from hyperscale data centers and AI infrastructure buildout. Analysts project Class C shares could appreciate roughly 30% over the next 12 months. While the company’s current valuation reflects premium positioning in the renewable energy landscape, the secular expansion of computing infrastructure suggests room for multiple expansion alongside fundamental growth.

Energy Transfer LP: Midstream Infrastructure Beneficiary

Energy Transfer LP functions as a critical midstream infrastructure partner, operating extensive networks of natural gas and crude oil pipelines alongside storage and processing terminals. With distributions yielding 7.9% and guided to grow 3-5% annually, the LP operates from its strongest financial footing in company history.

The partnership’s strategic advantage mirrors that of renewable generators: explosive data center growth requires corresponding expansion of electrical infrastructure and supporting energy logistics. Of 20 analysts tracked, 17 recommend either “buy” or “strong buy,” with consensus price targets implying approximately 29% upside from recent levels. The enterprise value-to-EBITDA multiple ranks among the lowest within its peer group, suggesting valuation discipline alongside growth exposure. The 1.21 gigawatts of capacity additions planned further underscore the company’s positioning within the energy transition framework.

Vici Properties: Gaming and Inflation-Protected Real Estate

Vici Properties represents the real estate investment trust (REIT) exposure within this trio, owning 93 gaming and resort properties leased to Caesars Entertainment, MGM Resorts, and other major operators. The REIT distributes 6.4% yield while maintaining a seven-year compound annual dividend growth rate of 6.6%.

The investment narrative extends beyond simple yield capture. Nineteen of 24 analysts rate the REIT as “buy” or “strong buy,” targeting 26% price appreciation potential. Trading at just 9.5 times forward earnings, valuation appears attractive relative to quality. Critically, 90% of rent roll incorporates CPI escalation clauses, providing natural inflation hedging as economic cycles evolve. Gaming properties represent a secular growth category, supported by consumer entertainment spending and operator margin expansion.

Investment Perspective

Each security offers distinct but complementary exposure: renewable infrastructure benefiting from electricity demand, energy logistics capturing midstream expansion, and real estate capturing operating leverage and inflation protection. Combined yields range from 5.6% to 7.9%, while growth catalysts suggest meaningful capital appreciation potential within a 12-month timeframe.