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Cameco has impressive growth figures and is more narrowly focused on nuclear energy than Duke.
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Duke has slower growth but a much better yield and dividend growth track record than Cameco.
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Both companies are strong nuclear energy plays, but Duke is the better dividend stock.
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 (NYSE: CCJ) and Duke Energy (NYSE: DUK). 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.
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.
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.
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.
