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.

Denison Mines (NYSE:DNN) Moving Up on Long Term Uranium Prices

The market has quickly changed for the outlook of uranium prices, as they had been dragged down by the low price of natural gas and uncertainty as to the future of nuclear, at least in the short term. Denison Mines (NYSE:DNN) and other uranium miners have continued to push up even in those circumstances, and have received more impetus lately as analysts and commentators focus again on uranium.

TD Newcrest upgraded Denison as a result of the expected long-term price increase in uranium.

They said, "We are increasing our target price our rating following our increased uranium price forecasts. And we have updated our valuation estimates to reflect yesterday’s preliminary resource estimate for the Wheeler River discovery, which was below our estimates and previous company guidance ranges."

Denison was trading at $2.72, up by $0.07, or 2.64 percent at 1:25 PM EST. TD Newcrest raised their price target on them from C$2 to C$3.

Cameco (NYSE:CCJ), USEC (NYSE:USU). Denison (AMEX:DNN), Grab Market's Attention

The nuclear story has been somewhat eclipsed and questioned over the last several months because of the emerging natural gas story and its implications for the industry, but new attention and reminder of China's growing nuclear demand has brought uranium suppliers Cameco (NYSE:CCJ), USEC (NYSE:USU). Denison (AMEX:DNN) into the limelight once again.

Cameco and USEC have attracted options traders, and Denison, along with Cameco, have been upgraded by RBC Capital on the renewed interest in the sector.

The reason nuclear has been overshadowed is there is now uncertainty with the understanding of the enormous supply of natural gas around the world, especially in the U.S., which has changed the energy picture tremendously.

Low-cost natural gas has already caused some nuclear projects to be put on hold, but it's doubtful if the majority of China's nuclear reactors won't continue or start to be built.

That mean uranium prices will continue to go up because Supply of uranium is tight, and China isn't the only country building out nuclear energy.

Even though generally overlooked, Denison and Cameco have still performed strongly since the middle of the summer, while USEC has been pretty much level.

Cameco closed Tuesday at $36.81, gaining $1.07, or 2.99 percent. Denison closed at $2.65, losing $0.15, or 5.36 percent, although they gained that back and more in after hours trading. USEC closed at $5.50, shooting up by $0.32, or 6.18 percent.