3 Energy Stocks to Buy With $500 and Hold Forever

The energy sector is undergoing a seismic shift, driven by the explosive growth of artificial intelligence (AI) and the insatiable demand for electricity to power data centers. As global tech giants and industries pivot toward digital transformation, utilities are repositioning themselves to meet this demand. For long-term investors, three companies—Constellation Energy (CEG), NRG Energy (NRG), and Vistra (VST)—stand out as strategic plays in this transition. These firms are not only expanding their clean energy and generation portfolios but also leveraging AI and strategic acquisitions to secure their roles in the next industrial revolution.

1. Constellation Energy: The Nuclear Powerhouse for AI's 24/7 Needs

Constellation Energy, the largest producer of emissions-free electricity in the U.S., operates a 33-gigawatt (GW) nuclear fleet that provides baseload power with a near-zero carbon footprint. This is critical for AI data centers, which require stable, continuous energy to function without interruption. In January 2025, Constellation acquired Calpine in a $26.6 billion deal, adding 26 GW of gas-fired turbine power and 1.5 GW of geothermal and renewables to its portfolio. This expansion gives it the scale to meet the surging demand from hyperscalers like Microsoft, with whom it signed a 20-year power purchase agreement (PPA).

Financially, Constellation is robust. It reported $24.2 billion in trailing-12-month revenue and a 12.3% profit margin, with a 21.96% return on equity (ROE), one of the highest in the sector. While its dividend yield of 0.74% is modest, its focus on long-term growth—such as investing $3.5 billion in 2026 for nuclear fuel and clean energy projects—positions it to sustain dividends as earnings grow. For investors seeking a mix of clean energy leadership and AI-driven demand, Constellation is a cornerstone.

2. NRG Energy: The High-Yield Innovator in Grid Flexibility

NRG Energy has emerged as a top-performing utility in 2025, with shares up 100% year-to-date. Its strategic acquisition of 13 GW of gas-fired generation from LS Power in May 2025 doubled its capacity, enabling it to serve AI data centers with reliable, dispatchable power. NRG's portfolio now includes geothermal, solar, and battery storage, aligning with the energy transition while maintaining flexibility.

NRG's dividend story is equally compelling. With a 1.16% yield and a conservative 35% payout ratio, it has room to grow payouts without straining its balance sheet. Its 2.58x cash flow coverage ratio ensures dividends are well-supported, even as it invests $12 billion in new assets. The company's management forecasts 14% compound annual EPS growth through 2030, making it a rare blend of yield and growth in the sector.

3. Vistra: The Diversified Giant with a Nuclear Edge

Vistra, which operates one of the largest competitive power portfolios in the U.S., is quietly building a clean energy empire. Its $1.9 billion acquisition of seven gas-fired plants from Lotus Infrastructure Partners in 2025 added 2,600 MW of capacity—equivalent to 2.5 nuclear reactors—while its 2023 purchase of Energy Harbor brought four nuclear units into its fold. These assets provide zero-carbon baseload power, ideal for AI data centers seeking to reduce their carbon footprints.

Vistra's 71.84% ROE is a standout metric, reflecting its efficient use of capital. While its dividend yield of 0.80% is lower than NRG's, its regulatory approvals to extend nuclear plant operations through 2046 ensure long-term earnings stability. The company's $2.3 billion 2025 capex plan, focused on solar and storage, further cements its role in the energy transition. For investors prioritizing scalability and regulatory tailwinds, Vistra offers a compelling long-term bet.

The AI-Driven Energy Transition: A Long-Term Opportunity

The U.S. Energy Information Administration (EIA) projects electricity demand will rise by 25% by 2030 and 78% by 2050, driven largely by AI and data centers. Constellation, NRG, and Vistra are leading the charge, with strategic acquisitions, AI-powered grid management tools, and partnerships with tech giants like Microsoft. These companies are not only meeting today's energy needs but also future-proofing their portfolios against the next wave of demand.

Final Thoughts: Buy and Hold for the AI Era

For the $500 investor, these three stocks offer a diversified approach to the energy transition. NRG Energy is the top pick for its high yield and growth potential, followed by Constellation Energy for its nuclear leadership and Microsoft partnership, and Vistra for its diversified assets and regulatory momentum. With AI-driven demand set to reshape the grid, these companies are positioned to deliver dividend income, capital appreciation, and long-term resilience in a world powered by clean energy and data.

Investors who act now can secure a stake in the utilities that will power the AI revolution—while reaping the rewards of compounding dividends and strategic growth.