The 3 Best Nuclear Energy Industry Stocks to Buy in 2026

Between 2000 and 2020, electricity demand increased 9%. Demand is expected to increase as much as 50% between 2020 and 2040. The massive increase in demand has led to a renaissance in nuclear energy, as it is a reliable, carbon-free energy source. If you want to get in on the growth that is taking shape in the nuclear power sector in 2026, here are three-ish options to consider from suppliers to producers to the companies working on cutting-edge technology.

First, look at the industry's suppliers

You don't have to buy a nuclear power plant operator to invest in nuclear power. Those plants have to be built, and they need fuel. That's where Brookfield Renewable Partners (NYSE: BEP) and Cameco (NYSE: CCJ) come in. Brookfield Renewable Partners is the least risky option on this list because it owns a globally diversified portfolio of clean energy assets. Within that mix is a 50% ownership stake in Westinghouse, one of the world's largest service providers to the nuclear power industry. The big draw, however, is likely to be the 4.7% yield backed by a decade of regular dividend increases.

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If you aren't a dividend investor, you may find Cameco of interest. Cameco owns the other half of Westinghouse. And it operates a uranium mining and processing business, supplying nuclear power plants with fuel. The stock has been on a tear, up 150% over the past year. That said, the company expects uranium demand to start outstripping supply by 2030, so elevated uranium prices could bolster Cameco's business for years to come.

Next, consider the plant operators

The most recent U.S. utility to construct a nuclear power plant was Southern Company (NYSE: SO). The Vogtle nuclear power plants were late and over budget, but now that they are connected to the grid, they will provide the large U.S. utility with decades of reliable clean energy. These plants are just one part of a much larger regulated utility operation, but Southern, and its reliable 3.1% dividend yield, is a way for conservative investors to dip their toes into the nuclear space.

Constellation Energy (NASDAQ: CEG) is a higher-risk option. This company is an independent power producer, so its prices are market-based. (Southern's rates are determined by regulators.) That said, Constellation owns one of the country's largest nuclear power fleets. But, like Cameco, the stock has risen sharply, up over 300% over the past three years. It is also notable that Constellation has been diversifying its business, recently buying a large natural gas power generator. That reduces risk in some ways, but being an independent power producer is inherently riskier than operating a regulated utility.

Finally, consider new technology

The last type of nuclear power company to consider is the most risky. Only aggressive investors should look at NuScale Power (NYSE: SMR) and Oklo (NYSE: OKLO). Both of these companies are attempting to build businesses around small-scale modular nuclear reactors. NuScale is doing so with a scaled-down version of current reactor technology. Oklo's plant design is intended to push the industry forward by enabling the use of recycled nuclear fuel.

Neither one has a commercial plant up and running just yet. Essentially, they are both losing money right now and will likely continue to do so for years to come as they continue to build their businesses. If you do decide to take the risk of investing in the nuclear power sectors leading edge technology, you might want to spread your bets. In other words, buy both and don't go overboard. It is too soon to tell which company will be a long-term winner or, frankly, if either one has what it takes to become sustainably profitable at all.

Think about your risk profile before you invest in nuclear power

The headline said three nuclear power stocks, but there are actually six listed here. That's because risk is something you need to consider very carefully. Nuclear power stocks have a volatile history, so you need to approach stock selection in the sector with caution.

Conservative investors should stick with companies like Brookfield Renewable and Southern. More aggressive sorts might appreciate Cameco and Constellation. And the most aggressive might want to buy NuScale and Oklo, perhaps viewing them as a paired investment in new, as-yet-unproven technology.

Reuben Gregg Brewer has positions in Brookfield Renewable Partners and Southern Company. The Motley Fool has positions in and recommends Cameco and Constellation Energy. The Motley Fool recommends Brookfield Renewable Partners and NuScale Power. The Motley Fool has a disclosure policy.