Monday, December 6, 2010

Cameco (NYSE:CCJ) Confident in Long-term Price Support of Uranium

Uranium hasn't yet captured the attention of the average investor, and so travels under the radar as sexier investments like gold, silver and copper have been paying more immediate dividends for investors.

But that is slowly changing, as evidenced by Cameco's (NYSE:CCJ) announcement they're hiking their dividend again, this time by 43 percent, underscoring their confidence in the support of uranium prices based on long-term demand for nuclear power.

Over the last nine years Cameco has boosted their dividend seven times.

Cameco Chief Executive Jerry Grandey said, "The substantial increase in our annual dividend demonstrates our confidence in our business and in the long-term fundamentals of the uranium market."

Recently Grandey said he sees support for uranium prices in a range of $50 to $70 a pound over the long term.

Starting in the first quarter of 2011, Cameco will start paying a 40 Canadian cents a year for each share, paid on a quarterly basis. That's up from the prior dividend of 28 Canadian cents.

Cameco closed in New York Friday at $37.51, down by $0.18, or 0.48 percent.

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