Green-energy transition remains underway as Constellation Energy and NextEra Energy present long-term investment potential

The Strait of Hormuz crisis has highlighted the fragility of global energy markets and reinforced the case for accelerating the shift away from fossil fuels. For countries that rely on energy exports from the Persian Gulf, the episode has added urgency to building more resilient power systems, including through nuclear energy.

Nuclear power as the next phase of the energy transition

While public focus on renewables has shifted over time, the transition remains active. The U.S. Department of Energy has set a goal to triple America’s nuclear production by the middle of the century, reflecting growing interest in nuclear as a long-term solution for energy needs.

Constellation Energy: largest U.S. nuclear operator and major green power producer

Constellation Energy (CEG), based in Baltimore, Maryland, operates 21 nuclear reactors, making it the largest nuclear energy producer in the United States. According to the Nuclear Energy Institute, there are 94 nuclear reactors in operation across the country.

Beyond nuclear, Constellation also operates 27 wind farms, two hydroelectric plants, and one of the country’s largest solar plants. Its core business is generating and selling electricity to customers nationwide.

Financial outlook and balance sheet

In its latest earnings report for Q4 and full-year 2025, Constellation projected that its base earnings per share (EPS) compound annual growth rate (CAGR) will be 20% through 2029.

• Net profit margin: 9.1%
• Debt-to-equity ratio: 0.61

Dividend profile

Constellation has paid a dividend since 2022. The current dividend yield is 0.57%, and the company has raised the dividend every year since 2022. Its payout ratio is 20.96%, indicating room to continue growing the dividend.

NextEra Energy: nuclear operator with a high-yield dividend

NextEra Energy (NEE) is another major green energy producer and nuclear operator. The company operates across the United States except Utah and Alaska, and also has operations in Canada, including Ontario, Quebec, Alberta, and Nova Scotia.

NextEra has four nuclear plants in operation—two in Florida and one each in New Hampshire and Wisconsin—with a fourth expected to come online in 2029. The company is also active in wind, solar, and natural gas projects.

New supply agreement for data centers

NextEra has an agreement with Alphabet’s parent company to resurrect Iowa’s Duane Arnold Energy Center to supply power to Google’s data centers in the area for the next 25 years.

Recent performance and profitability

NextEra reported strong 2025 results, with net income and EPS rising 10.3% and 9.5%, respectively, compared with 2024. The company’s net profit margin is 19.45%.

• Net income growth (2025 vs. 2024): 10.3%
• EPS growth (2025 vs. 2024): 9.5%
• Net profit margin: 19.45%

Dividend growth and payout

NextEra pays a dividend with a yield of 2.49% at current prices. The payout ratio is 68.67%, described as high but healthy. The company has raised its dividend for 31 consecutive years and has grown it at an annualized rate of 10% over the past five years.

Implications for investors

With nuclear positioned as a key part of the energy transition, both Constellation and NextEra are presented as long-term plays. Constellation’s projected 20% EPS CAGR through 2029 and low payout ratio support continued dividend growth, while NextEra’s higher dividend yield and long track record of annual increases make it a candidate for dividend reinvestment plans (DRIPs).