A Most Radiant Investment: Nuclear Dividends

It appears the age of fission is not, as some predicted, a fading memory, but rather a most unexpected renaissance. One might say, the atom, like a neglected debutante, is enjoying a second season. The Americans, with their characteristic practicality, aspire to triple their nuclear capacity. Japan, ever the pragmatist, intends to derive a fifth of its power from the same source by 2040. Even South Korea, a nation not given to rash decisions, is adding to its atomic arsenal, so to speak. Around the globe, reactors are sprouting like unwelcome, yet undeniably potent, gardenias – seventy-five under construction, a further hundred planned. A most impressive display of industrial ambition, wouldn’t you agree?

The trifling inconvenience, of course, is time. These magnificent engines of power are not conjured into existence by a mere wave of the hand. Five years, the experts tell us, is the average gestation period for a new plant. A lamentable delay for those of us who prefer instant gratification, but scarcely a catastrophe for the discerning investor. Patience, after all, is a virtue – and a most profitable one, when coupled with a judicious selection of assets.

Which brings us to NextEra Energy (NEE +1.57%). A company, I confess, that lacks a certain poetic quality in its name, but more than compensates with its pragmatic brilliance. It’s a power company, naturally. But it’s the manner in which it generates that power that truly distinguishes it. Seven reactors already humming contentedly across Florida, New Hampshire, and Wisconsin, with a fifth promised by 2029. A rather substantial portfolio, wouldn’t you say? And, crucially, a diversification into wind, solar, and even the rather prosaic natural gas. A sensible precaution, as even the most dazzling star requires a supporting cast.

It seems even Google, that titan of the digital age, recognizes the inherent value of NextEra’s endeavors. A collaboration is afoot to resurrect the Duane Arnold plant in Iowa, primarily to power Google’s data centers. A twenty-five-year power purchase agreement, no less! A most sensible arrangement, for a company built on information requires a reliable source of energy. One might even say, it’s a marriage of minds – or, more accurately, of megawatts and megabytes.

The company’s earnings, I’m pleased to report, are flourishing. A 28.5% increase in net earnings per share in 2025, with an anticipated compound annual growth rate of 8% through 2035. The Duane Arnold plant, and Google’s patronage, will undoubtedly accelerate this upward trajectory. A most gratifying spectacle, for both the company and its shareholders.

But the true allure of NextEra, for the discerning investor, lies in its dividend. A yield of 2.5% with current prices, and a remarkable thirty-two-year streak of annual increases. It’s more than halfway to achieving ‘Dividend King’ status – a title reserved for companies that have consistently rewarded their shareholders for fifty years or more. A most impressive record, and a testament to the company’s financial fortitude. The recent 10% increase in the dividend, and projections of 6% annual growth through 2028, are merely the icing on the cake.

The payout ratio, currently at 68.67%, is admittedly a touch elevated, but hardly cause for alarm. It was considerably higher in 2022 and 2020, yet NextEra continued to increase its dividend while simultaneously reining in its spending. A remarkable feat of financial dexterity, and a clear indication of the company’s long-term sustainability.

In conclusion, NextEra Energy presents a most compelling opportunity for the discerning investor. A company that combines robust growth, a generous dividend, and a commitment to sustainable energy. A true gem, and one that deserves a place in any well-diversified portfolio. One might even say, it’s an investment that will not only generate returns, but also illuminate the path to a brighter future.

2026-03-20 06:02

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