Nuclear energy accounts for about 11% of the world’s total energy production and this is expected to grow in the coming years, making the industry ideal for investors. But it is important to note that this venture is not for the faint of heart. This industry is one with most risks in the power sector and the nuclear plants are costly and take years to build. It also takes time for new reactor designs to be made and approved by the U.S. Nuclear Regulatory Commission. Whatever the case, the risk is high, but the returns can be substantial, making it sensible to consider investing in nuclear companies.
1. Uranium Mining Stocks
Uranium is an essential mineral in the production of nuclear power and there are several companies that owner vast reserves of uranium from different mines. Canada and Australia are the two major producers of Uranium and investors can invest in companies that explore and mine this mineral. Top companies with stocks include Uranium Participation Corp, Denison Mines Corp, and BHP Billion Ltd.
2. Construction Companies
Building nuclear plants is quite costly, time-consuming and labor-intensive. There are companies that have specialized in the design and construction of these plants, which take a longer time to be approved. If power plant investment, then construction companies are ideal nuclear energy stocks to invest in.
3. Public Utility Stocks
Another viable option for investing in nuclear companies are the public utility stocks. The increasing power demand has pushed the electricity-producing utilities to invest in the construction of nuclear power plants. These companies make attractive options for investors who looking for consistent dividends and long-term stock growth. About 31 public utilities operate over 100 power plants in over 31 states. Additionally, more and more applications for new power plant constructions are awaiting approval.
4. Uranium ETFs
ETFs make nuclear energy investment even more exciting. Today, there are more exchange-traded nuclear power funds. Some funds hold over 20 companies with a focus on nuclear energy. Others focus on uranium mining and production. ETFs are thinly traded so it’s wise to make informed decisions.
The nuclear power industry is still growing and there are so many expectations from both the stakeholders and the companies. Therefore, if you are considering investing in nuclear companies, making the right decisions now could potentially lead to huge returns. With so many investment options and varied publicly traded nuclear companies, it is essential to take the time in choosing one that is feasible and convenient for you.