3 Dividend Stocks Riding the Same Nuclear Build-Out From Different Angles

Over the next 20 years, demand for electricity is expected to be six times higher than it was between 2005 and 2025. That step change in demand is being driven by new technologies like artificial intelligence (AI) and electric vehicles. Nuclear power is expected to play an important part in meeting that demand, leading to something of a renaissance for the industry.

You could play into that revival with high-risk investments, such as Oklo (NYSE: OKLO) or NuScale Power (NYSE: SMR). Both are money-losing upstarts attempting to build small modular nuclear reactors (SMRs). Or you could play it safe with dividend stocks like Constellation Energy (NASDAQ: CEG), Brookfield Renewable (NYSE: BEP), and NextEra Energy (NYSE: NEE). Here's why the dividend stocks could be a better choice.

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Earnings are likely years away

When it comes to nuclear power, Oklo and NuScale are at the cutting edge. Both are attempting to build small modular nuclear reactors. Oklo wants to build and operate its own reactors, while NuScale wants to build reactors and sell them to others to operate. SMRs are exciting because their small size and modern safety technology would allow them to be placed closer to where they are used. Think about an artificial intelligence data center powered by an SMR, which would help it avoid taxing the electric grid and driving electricity prices higher.

There's just one problem. Oklo generated $1.4 million dollars of revenue in the second quarter of 2026, versus operating expenses of $74.4 million. NuScale's situation looks even worse, with revenues of $75,000 and operating expenses of just over $64 million. Simple math shows they are both bleeding red ink.

OKLO data by YCharts

Clearly, neither of these stocks is appropriate for risk-averse investors. In fact, it could be years before either is sustainably profitable. And since they aren't yet profitable, you can forget about dividends.

Three dividend options across the risk spectrum

But you can invest in nuclear power while generating dividend income, with options to suit different risk profiles. For example, Constellation Energy works outside of the regulated utility market, selling power directly to customers. It operates the largest fleet of nuclear reactors in the United States, with major nuclear power deals with Microsoft (NASDAQ: MSFT), Meta (NASDAQ: META), and Amazon (NASDAQ: AMZN) to help each build out its AI infrastructure.

The yield is a bit miserly at roughly 0.5%, but the real story here is about growth. Notably, since Constellation isn't a regulated utility, it can charge market rates for the power it sells. Given today's strong demand for electricity, this independent power producer is well-positioned to profit.

NextEra Energy is another utility option, with its planned acquisition of Dominion Energy (NYSE: D) expected to push it into the number two spot in the U.S. nuclear space. Dominion, notably, operates in one of the world's most important data center markets. NextEra's dividend yield is 3.2%, and the dividend has been increased annually for over 30 years. And it operates both a large regulated utility and one of the world's largest solar and wind power businesses. It is a comfortable middle ground between growth and income.

For those seeking more income, Brookfield Renewable and its lofty 5.3% yield would be appropriate. The business owns a globally diversified portfolio of clean energy assets, including hydroelectric, solar, and wind power, as well as storage assets. But it also owns a stake in Westinghouse, one of the world's largest nuclear energy service providers. It is a less direct play on the space, since it is basically a picks-and-shovels opportunity. But it has been a reliable dividend grower over the past decade, with an average distribution increase of 5% a year, and offers a very attractive yield right now. If you are trying to live off your dividends, it could be a good fit and provide some exposure to nuclear power.

You don't have to jump in with both feet

While Oklo and NuScale Power offer investors a chance to be at the leading edge of nuclear technology, they also carry significant risks. If you focus on dividend stocks, you can avoid some of those risks, but you can still lean into growth with a company like Constellation Energy. Or you can look at a growth-and-income stock like NextEra Energy, which is leaning into nuclear and AI through its planned acquisition of Dominion Energy. For those trying to maximize yield, Brookfield Renewable could be the best choice, even though nuclear is only one part of a much more diversified clean energy portfolio.

Reuben Gregg Brewer has positions in Brookfield Renewable Partners. The Motley Fool has positions in and recommends Amazon, Constellation Energy, Meta Platforms, Microsoft, and NextEra Energy. The Motley Fool recommends Brookfield Renewable Partners, Dominion Energy, and NuScale Power. The Motley Fool has a disclosure policy.