Here's Why Nuclear Energy Stocks May Be the Smartest Buys of 2026

There were plenty of reasons to be bullish on nuclear energy prior to the events across the Middle East over the past month.

From the power needs of artificial intelligence (AI) to a general push for carbon-free energy production, nuclear technology was already seeing a renaissance.

Then, because of the escalating war between Iran, the United States, and Israel, Iran closed the Strait of Hormuz, through which about one-fifth of all global oil and gas moves.

The effects of the closure have been most heavily felt in Asia, but oil and gas prices the world over are on the rise.

I would not be surprised if many countries pivoted even faster toward nuclear energy to achieve a greater degree of energy independence.

Image source: Getty Images.

Per the World Nuclear Association, there are 75 nuclear reactors under construction around the world right now with another 120 planned.

Many countries have plans to expand their nuclear energy capacity over the next couple of decades, and the U.S. has one of the most ambitious goals. The Department of Energy wants to triple America's nuclear production by the middle of the century.

And nuclear energy producers like NextEra Energy (NYSE: NEE) will be one of the best ways to play the nuclear renaissance in 2026 and beyond.

The future of energy production

Based in Juno Beach, Florida, NextEra energy is one of America's major nuclear operators with its seven reactors across four plants with another one on the way in 2029 (more on that shortly), the company generates 6 gigawatts of nuclear power.

The company is also engaged in solar, wind, and natural gas power generation. But the real opportunity here is nuclear, as that's the one that seems to have the most government and corporate interest behind it.

That's best demonstrated by NextEra Energy's partnership with Google's parent company Alphabet.

The nuclear plant NextEra is working to bring on line in 2029 is actually the company resuscitating Iowa's decommissioned Duane Arnold Energy Center.

Per the partnership, Google will buy electricity from the Duane Arnold plant for the next 25 years to power its data centers in the area. The agreement will also see NextEra and Google explore deployment of additional nuclear plants across the United States.

It takes a long time to build a nuclear power plant. According to the U.S. Energy Information Administration (EIA), it takes about five years on average to build a new plant.

That makes nuclear power a prime dividend investment opportunity. NextEra pays a dividend that yields 2.54% at present, and it has raised that dividend for 32 years in a row.

And with the company's current payout ratio sitting at a high but still fairly comfortable 68.67% right now, it should not have much trouble continuing to pay and raise that dividend. The company also knows how to get that ratio lower while continuing its dividend increases; it had a 94.59% payout ratio back in 2020.

Aside from its dividend indicating its financial health, NextEra maintains a net profit margin of 19.45% and for 2025, the company saw its adjusted earnings per share (EPS) grow 12% on revenue growth of 13%.

This stock is worth a look for a long-term dividend play on the nuclear renaissance, a trend I expect will accelerate in the wake of increased geopolitical tensions in the Middle East.

James Hires has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and NextEra Energy. The Motley Fool has a disclosure policy.