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What Makes Public Service Enterprise Group (PEG) a Good Buy Amid the Nuclear Renaissance
Yahoo Finance· 2025-10-11 15:24
Core Insights - Public Service Enterprise Group Incorporated (PEG) is recognized as one of the best nuclear power stocks to buy according to analysts [1] - The company has a strong commitment to shareholders, demonstrated by a 5% increase in its annual dividend to $2.52 per share, marking the 14th consecutive annual increase [2] - PEG's nuclear fleet generated approximately 7.5 terawatt hours (TWh) in Q2 2025, an increase of 0.5 TWh compared to the same period in 2024, totaling 15.9 TWh for the first half of the year [2] Financial Performance - PEG updated its five-year capital spending program from $21 billion to $24 billion, supporting an expected rate base CAGR of 6% – 7.5% through 2029 [2] - This capital program is projected to drive the company's non-GAAP operating earnings CAGR to 5% – 7% at the nuclear production tax credit (PTC) threshold [2] - PEG has maintained a consistent dividend payment for 118 consecutive years, with an annual dividend yield of 3.08% as of the report [2] Strategic Outlook - The company intends to execute its capital program without issuing new equity or selling assets, indicating a strong financial strategy [2] - While PEG shows potential as an investment, there are suggestions that certain AI stocks may offer greater upside potential with less downside risk [2]