10 Unstoppable Dividend Stocks to Buy

6. Constellation Energy Corporation (NASDAQ:CEG)

Year-to-Date Return as of September 9: 48.5%

Constellation Energy Corporation (NASDAQ:CEG) is a Maryland-based energy company that offers electric power, natural gas, and energy management services. The stock has gained nearly 49% since the start of 2024 due to its solid financial prospects and increasing expectations that tech firms will turn to nuclear energy to power their AI data centers.

Constellation Energy Corporation (NASDAQ:CEG)’s carbon-free nuclear fleet has continued to perform at top industry levels. Alongside the rest of its generation fleet, it is contributing to keeping American families and businesses cool, maintaining a strong US economy, and supporting thriving communities. In the second quarter of 2024, the company reported revenue of $$5.48 billion, up 0.5% from the same period last year.

As the top nuclear power producer in the country, Constellation Energy Corporation (NASDAQ:CEG) stands to gain significantly from the expected increase in electricity demand driven by AI data centers. This boost could further improve the company’s already positive earnings growth outlook. Consequently, the company has raised its full-year 2024 guidance, now projecting adjusted (non-GAAP) operating earnings to range from $7.60 to $8.40 per share.

ClearBridge Investments also mentioned this in its Q1 2024 investor letter. Here is what the firm said about Constellation Energy Corporation (NASDAQ:CEG):

“On a regional basis, the U.S. and Canada was the top contributor for quarter, with U.S. electric utility Constellation Energy Corporation (NASDAQ:CEG) and U.S. rail operator CSX the lead performers. Constellation Energy is primarily a nuclear generation company and is the largest producer of carbon-free electricity in the U.S., serving states including New York, Illinois, Maryland, Pennsylvania and New Jersey. The company’s combined generation capacity is more than 32 GW and 90% of annual output is carbon free. Constellation has been a beneficiary of AI and subsequent power demand as its 24/7 base load nuclear generation can get premium contracts.”

Constellation Energy Corporation (NASDAQ:CEG), one of the best unstoppable dividend stocks, currently offers a quarterly dividend of $0.3525 per share. The company started paying dividends in 2022 and has raised its payouts twice since then. The stock has a dividend yield of 0.81%, as of September 9.

Constellation Energy Corporation (NASDAQ:CEG) also attracted the attention of elite money managers with 71 hedge funds investing in the company at the end of Q2 2024, up from 54 a quarter earlier, according to Insider Monkey’s database. The stakes held by these hedge funds have a total value of over $3.7 billion.