Atlantic Power Corp (AT), Duke Energy Corp (DUK), NextEra Energy, Inc. (NEE): This Dividend Stock Just Chose Natural Gas. Duh.

In direct contrast to Atlantic, the company is also investing $2.2 billion over the next four years to upgrade its transmission division. These funds will help keep costs low for its regulated division and should provide steadier income than its aging generation fleet could offer.

Nuclear for the win?
NextEra Energy, Inc. (NYSE:NEE) may be the biggest renewable player around, but Exelon Corporation (NYSE:EXC) offers the most straightforward niche in town: nuclear. There are many compelling arguments for nuclear, not the least among them an opportunity to be contrarian with this relatively cheap fuel.

Source: Author; data from 10-K.

The company recently received a dividend haircut, clearing up capital for nuclear uprates, maintenance, and renewables expansion.

Source: Exelon earnings-call slides.

Its stock has been battered as natural gas prices have nipped nuclear’s, and a dividend cut never makes any friends with income investors. But if Exelon can make the most of its recent Constellation Energy merger and keep costs competitive for nuclear, this utility could be on the verge of a 2013 comeback.

Which niche is nicest?
Utilities face the same basic question we investors ask: How can we maximize return while protecting ourselves from risk? Top-line sales can’t be counted on to boost earnings, and utilities everywhere are scrambling to find the best answer for themselves.

Atlantic’s handing off transmission to Duke Energy Corp (NYSE:DUK), NextEra Energy, Inc. (NYSE:NEE)’s kicking out hydro, Ameren’s investing in regulation, and Exelon is adding on nuclear. Regulation and energy prices will make or break each of these decisions, and investors will need to watch closely as their stocks stick to their guns on various energy sources and business models.

The article This Dividend Stock Just Chose Natural Gas. Duh. originally appeared on Fool.com.

Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo. The Motley Fool recommends Exelon.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.