Cameco and Duke Energy both make a compelling case for a nuclear energy investment, but one of them is a much better dividend play.
Nuclear energy is enjoying a renaissance in the United States. Between artificial intelligence (AI) driving demand, government policy now being heavily in favor of nuclear power, and public perception shifting in its favor, everything is coming up roses for companies involved in splitting the atom.
But it takes years to build a new reactor and, once completed, its useful lifespan is around 40 years, but can be extended to as long as 80. That means any investment in nuclear power is almost necessarily a long-haul investment, which makes many nuclear stocks great options for passive income.
And two of the top contenders for a nuclear dividend play are Cameco (CCJ +3.19%) and Duke Energy (DUK +0.27%). Now, I hold shares of Cameco, and while I think it’s the stronger overall nuclear energy stock, I think Duke is the better dividend play.
Image source: Getty Images.
Cameco is striking gold by mining uranium
Cameco’s business is pretty straightforward. The company mines and refines uranium for use in reactors around the world. It’s actually the second-largest uranium miner in the world, behind only Kazakhstan’s Kazatomprom. Cameco produced 17% of all the world’s uranium consumed in 2024.
Today’s Change
(3.19%) $3.60
Current Price
$116.44
Key Data Points
Market Cap
$49B
Day’s Range
$113.30 – $118.54
52wk Range
$35.00 – $118.54
Volume
5.6M
Avg Vol
4.5M
Gross Margin
26.65%
Dividend Yield
0.15%
Cameco is profitable and growing with a net income margin of 15.18% and a three-year revenue compound annual growth rate (CAGR) of 24.18%. Its stock has positively trounced the S&P 500‘s return in the past 12 months; it’s up 124% at the time of writing.
However, that’s not why you hold a dividend stock, and Cameco’s dividend leaves a lot to be desired. The company pays an annual dividend of $0.17 per share for a yield of 0.16% at current prices. It has grown that dividend in the past two years, but not by much.
I hold Cameco for the appreciation, not the dividend. And if you’re looking for a nuclear dividend, Duke Energy has one of the best yields out there right now.
Duke Energy has the nukes (and a great dividend)
Based in Charlotte, North Carolina, Duke Energy is a major power company in the southeastern and midwestern United States. It operates a diverse array of energy production facilities, including fossil fuel and renewable plants. For this article, I want to highlight its 11 nuclear reactors across six plants in the Carolinas.
Today’s Change
(0.27%) $0.32
Current Price
$119.22
Key Data Points
Market Cap
$92B
Day’s Range
$117.86 – $119.40
52wk Range
$108.45 – $130.03
Volume
4.5M
Avg Vol
3.3M
Gross Margin
32.12%
Dividend Yield
3.55%
Now, it’s worth noting that U.S. Census data shows that the southern U.S. is both the most populous and the fastest-growing region in the country. 2024 data indicate 132.6 million people live in the region. And, these states, especially the Carolinas, are seeing some of the fastest population growth in the country. That means secular demand growth for Duke’s power aside from any data center construction.
Perhaps that’s why, despite Duke’s slower revenue growth than Cameco (it has a CAGR of 5.29% over the past three years), it has a comparable net margin of 15.97%. And there’s no comparison on the dividend front.
Duke pays out an annual per-share dividend of $4.26, or $1.07 quarterly, which is good for a yield of 3.65% at current share prices. It also has a 15-year history of raising its dividend. Duke’s price return for the past 12 months might only be 10%, but that also helps it to maintain an attractive dividend yield.
I like Cameco a lot, but I don’t hold it for the dividend, and I’d take a look at Duke if that’s what you’re interested in.
