Industry Overview - The energy sector, particularly nuclear energy, presents significant income-investing opportunities, with nuclear energy being one of the cleanest and safest options available [1] - The demand for nuclear energy is increasing due to the power needs of artificial intelligence (AI), with the International Energy Agency (IEA) estimating that AI's global electrical consumption will double by 2030 [2] - The U.S. Department of Energy aims to triple nuclear energy production by 2050 to meet both AI demands and enhance energy independence [2] Company Analysis: Dominion Energy - Dominion Energy, based in Virginia, operates four nuclear power plants and generates half of Connecticut's electricity from the Millstone Nuclear plant [5] - The company offers a dividend yield of 4.19%, with a slow and steady growth model, maintaining an operating margin of 29.45% [6] - Despite a high payout ratio of 99.6%, Dominion has reduced this from 121.3% in 2024, indicating improved financial management [6] - The company's strategic location in Virginia, a state with high energy demand due to data center construction, enhances its operational advantages [8] Company Analysis: BWX Technologies - BWX Technologies, also based in Virginia, specializes in nuclear propulsion systems for the U.S. Navy and is developing small modular reactors (SMRs) [10] - The company has reported impressive growth, with Q3 2025 revenue increasing by 29%, net income by 19%, and earnings per share (EPS) by 20% year over year [13] - BWX's current dividend yield is 0.5%, but it has been growing at an annualized rate of 4.28% over the past five years, with a low payout ratio of 26%, allowing for further dividend growth [14]

Core Insights - Oklo has experienced significant growth in its stock value over the past year, driven by increasing investor interest in nuclear energy as a solution for powering data centers supporting AI computing [1][5][7] - The company successfully completed a merger with a SPAC in May 2024, raising approximately $306 million, which further fueled investor enthusiasm [2] - Oklo's stock has vastly outperformed the market, with a $1,000 investment made on August 21, 2024, growing to $9,929 within a year [7] Company Developments - In November 2024, Oklo announced partnerships with two major data center providers to deliver up to 750 megawatts (MW) of power, expanding its project pipeline to around 2,100 MW [5][6] - The company has also engaged in projects with Vertiv and Liberty Energy to enhance data center infrastructure, indicating strong ongoing interest from data center companies [6] - Oklo broadened its scope by acquiring Atomic Alchemy, a specialist in radioisotope production, diversifying its business interests [6] Investment Considerations - Despite the strong performance, investing in Oklo remains speculative as the company is still preparing to commence commercial operations [8] - For more conservative investors, nuclear energy exchange-traded funds may provide exposure to the sector while reducing the risks associated with a single investment in Oklo stock [9]