The Under-the-Radar Nuclear Energy Stock That Could Supercharge Your Passive Income
Why it matters: The U.S. aims to triple nuclear power capacity by mid-century, impacting 30% of global nuclear generation.
- U.S. Department of Energy has set a goal to triple America's nuclear power generation capacity by mid-century.
- Pinnacle West Capital Corp. (PNW), a holding company for Arizona Public Service (APS), operates the Palo Verde nuclear plant, the largest and most productive in the U.S., powering over 4 million homes and businesses.
- APS is actively renewing Palo Verde's operating licenses for another 20 years and exploring new nuclear deployments, including small modular reactors (SMRs), with partners like Salt River Project and Tucson Electric Power.
- Pinnacle West Capital Corp. has seen a modest 7.29% share price increase over the past 12 months, preserving its 3.69% dividend yield, which is considerably higher than many other nuclear power companies.
- The company maintains a healthy financial profile with a 71.19% payout ratio, 11.83% net profit margin, and has raised its dividend for five consecutive years.
The U.S. Department of Energy aims to triple America's nuclear power capacity by mid-century, positioning nuclear energy companies as prime dividend opportunities due to the long lead times for new plant construction. Pinnacle West Capital Corp. (PNW), an under-the-radar utility operating the nation's most productive nuclear plant, Palo Verde, offers a compelling 3.69% yield, significantly higher than competitors like Constellation Energy (0.54%), making it an attractive passive income play.
