Four Dividend-paying Uranium Investments to Consider Purchasing
By: Paul Dykewicz,
Four dividend-paying uranium investments to consider purchasing have dipped in price lately to offer what could become a fresh chance to profit.
The four dividend-paying uranium investments to consider purchasing have risen along with the commodity’s physical price that recently reached $106 per pound, the highest level since 2007 when the chemical element used in fueling nuclear energy hit its all-time peak of $136 per pound in June of that year. Uranium prices spiked briefly in 2007 when enthusiasm for nuclear energy erupted and the world’s biggest mine for the metal flooded, shrinking supply.
The price per pound has jumped 147% since Russia’s invasion of Ukraine in February 2022. In 2023, the price of uranium oxide concentrate, U308, also known as yellowcake, soared 90% as demand spiked amid limited supply.
Four Dividend-paying Uranium Investments to Consider Purchasing Amid Limited Supply
Aside from uranium supply chain challenges, other reasons for growing interest in the commodity include nuclear expansion plans around the world and geopolitical tensions with Russia’s continuing invasion of Ukraine and the breakout of a war in the Middle East touched off by a horrific Hamas attack of Israel on Oct. 7 that killed roughly 1,200 people. Those factors combine to keep upward pressure on uranium prices.
Israeli Defense Forces (IDF) responded to the terrorist act by entering neighboring Gaza where the militants had originated when they infiltrated Israel to murder, rape and terrorize its citizens before taking an estimated 250 hostages from their homeland. Iran-backed groups in Lebanon, Syria, Iraq and Yemen that support the Palestinians have subsequently fired upon Israel to widen the conflict that has caused more than 26,000 deaths in Gaza since Oct. 7.
Even though certain uranium mining operations have restarted and several resumed production, supply still needs time to ramp up. BofA Global Research forecasts that current uranium supply-and-demand imbalances will persist with deficits projected through the rest of 2024.
Four Dividend-paying Uranium Investments to Consider Purchasing: URA
Global X Uranium ETF (URA) has amassed nearly $900 million of investment inflows in the past 24 months compared to more than $1.3 billion in outflows from a popular clean energy fund, iShares Global Clean Energy ETF (ICLN), BofA wrote in a recent research note. Nuclear power is cleaner, cheaper and safer than “renewable” energy sources, the report added.
An advocate of uranium investments in the past year has been Mark Skousen, PhD, a free-market economist who has headed the Forecasts & Strategies investment newsletter for the last 44 years. Skousen not only has helped subscribers of his newsletter to profit from uranium, but he also has shared winning recommendations in his premium trading services TNT Trader and Fast Money Alert.
Skousen’s Forecasts & Strategies subscribers were able to scoop up a profit of more than 10.32% in just 122 days, while buyers of his TNT Trader service only needed 98 days to notch returns of 39.94% in stock and 243.33% in option trades of uranium. Since 2018, uranium prices have outperformed other hard assets, including gold, Skousen wrote to his subscribers.
Mark Skousen, head of Forecasts & Strategies and scion of Ben Franklin, talks to Paul Dykewicz.
Bryan Perry, a Wall Street veteran who heads the Cash Machine investment newsletter and its Premium Income Pro and Quick Income Trader services, used options to help his subscribers notch profits in URA. Perry’s option trade recommendations produced gains of 8.35% in Premium Income Pro and 23.55% in Quick Income Trader in five weeks and 10 weeks, respectively.
Bryan Perry heads Cash Machine, with a double-digit-percentage dividend yield.
A global environmental conference in the United Arab Emirates, held last Nov. 30 to Dec. 12, addressed the effects of climate change and efforts to cut greenhouse gas emissions. More than 20 nations, including the United States, France, Japan and the United Kingdom, agreed to triple global nuclear energy generation by 2050.
But uranium prices also are jumping due to a short-term squeeze after Kazatomprom, the world’s biggest uranium miner, warned that it is likely to fall short of its production targets during the next two years.
Four Dividend-paying Uranium Investments to Consider Purchasing: Skousen Seizes Upon Surge
Global X Uranium Fund (URA) is up 6.4 10% so far in 2024 as one of the recommendations in Skousen’s Forecasts & Strategies investment newsletter. URA is an exchange-traded fund that has a diversified portfolio that invests in Cameco (NYSE:CCJ), NexGen Energy (NYSE: NXE), Uranium Energy Corp. (NYSEAMERICAN: UEC), Denison Mines (NYSE: DNN), Paladin Energy (OTCMKTS: PALAF), as well as Energy Fuels (NYSEAMERICAN: UUUU).
“The fund also has an 11% position in physical uranium through the Sprott Physical Uranium Trust,” Skousen wrote to his subscribers. “It will provide greater stability and less risk when it comes to investing in uranium, which I believe has a bright future.”
Bob Carlson, the head of the Retirement Watch advisory service and a former pension fund chairman, also likes Global X Uranium (URA), which seeks to track the Solactive Global Uranium & Nuclear Components Total Return Index. URA recently had 48 positions with 71% of the fund in the 10 largest positions. Top holdings recently consisted of Cameco (NYSE: CCJ), Sprott Physical Uranium Trust Units (OTCM: SRUUF), NexGen Energy (NYSE: NXE), National Atomic Co. Kazatomprom JSC (F:OZQ), and Uranium Energy Corp. (NYSE American: UEC).
URA’s recent dividend yield reached 6.07%. The fund is up 18.34% during the last three months and 37.23% in the past 12 months.
Chart courtesy of www.stockcharts.com
Four Dividend-paying Uranium Investments to Consider Purchasing: NLR
Another uranium ETF to consider purchasing is VanEck Uranium + Nuclear Energy (NLR). The ETF launched in 2007 and aims to replicate the MVIS Global Uranium & Nuclear Energy Index. NLR recently had 26 positions, and 57% of its holdings were in the 10 largest positions.
Bob Carlson, who heads Retirement Watch, answers questions from Paul Dykewicz.
Top NLR holdings at press time were PG&E (PCG), Public Service Enterprise Group (PEG), Constellation Energy (NASDAQ: CEG), Cameco and Paladin Energy (OTC: PALAF).
The fund’s dividend yield recently reached 4.56%. NLR is up 4.04% in the last month, 12.53% over three months and 35.36% during the past year.
Chart courtesy of www.stockcharts.com
Four Dividend-paying Uranium Investments to Consider Purchasing: CCJ
Cameco Corp., of Saskatoon, Saskatchewan, is one of the world’s largest uranium producers. Its flagship McArthur River mine in Saskatchewan accounts for roughly 50% of its output in normal market conditions.
The pure-play uranium producer also operates uranium conversion and fabrication facilities. Plus, the company holds uranium reserves estimated to weigh more than 464 million pounds.
Jim Woods, a former U.S. Army paratrooper, co-heads Fast Money Alert.
Demand for uranium is surging, with nuclear power proving to be an efficient, carbon-free source of energy that is gaining a reputation as safe and clean, Skousen and his partner Jim Woods wrote to their subscribers in the Fast Money Alert trading service.
“Let’s take advantage of this fission-fueled price spike,” the duo advised their Fast Money Alert subscribers last fall. They told their subscribers to take profits of about 5% slightly more than two months later.
Chart courtesy of www.stockcharts.com
Four Dividend-paying Uranium Investments to Consider Purchasing: CW
Curtiss-Wright Corp. (NYSE: CW), a diversified manufacturing company headquartered in Davidson, North Carolina, supplies key equipment for Boeing and Airbus aircrafts, defense products and nuclear energy plants.
Curtiss-Wright is showing growth in its nuclear energy business, wrote Louie DiPalma, an aerospace analyst with Chicago-based investment firm William Blair. The Infrastructure Bill (IIJA) and Inflation Reduction Act included roughly $36 billion aggregate dollars to be spent in facilitating nuclear reactor life extension and maintenance activities, for which Curtiss-Wright directly provides services, he added.
“We expect nuclear to be the largest source of growth for Curtiss-Wright over the next five years with construction in Eastern Europe over the next several years and the commercialization of small modular reactors (SMRs) by 2027-2028,” DiPalma opined.
As for the CW aerospace business, the Boeing 737 MAX is currently producing at a rate of 31 per month and aims to transition to 38 per month for 2024 and seeks to reach roughly 50 per month in 2025-2026. While the 50 per month is lower than the prior expectation of 57 per month, Boeing inked a partnership agreement with key supplier Spirit AeroSystems (NYSE:SPR) in late 2023, boosting the likelihood that it can reach and potentially exceed that target, wrote DiPalma.
“Coming out of the pandemic, the commercial aerospace segment has been performing very well and should continue with that trend,” wrote DiPalma, who rates SPR as “outperform.”
Curtiss-Wright also is involved in the defense business. Heightened geopolitical tensions in Ukraine, Taiwan, and Israel should drive continued growth from the rearming of U.S. allies, DiPalma wrote. In late 2023, the Biden administration provided a $100 billion aid package to support Israel and Ukraine. That commitment, along with an increased defensive presence, should aid Curtiss-Wright, as funding increases spur heightened production of aviation, maritime and ground vehicles, DiPalma added.
Since the Russia-Ukraine War began in February 2022, total defense revenue collected by CW has “grown quite well,” DiPalma wrote. He forecast CW defense revenue growth at 10% in 2023 and 6.5% in 2024.
Chart courtesy of www.stockcharts.com
Four Dividend-paying Uranium Investments to Consider Purchasing: Growing Geopolitical Risk
Geopolitical risk appears to be rising, based on escalating attacks in the world’s hot spots. However, Ukraine President Volodymyr Zelensky gained a pledge of military supplies from Poland and its recently elected Prime Minister Donald Tusk during a meeting in Kyiv, Ukraine, on Monday, Jan. 23. It marked Tusk’s first visit to a foreign capital since his election in October 2023.
“We had very productive talks in Kyiv with @DonaldTusk about all aspects of Ukrainian-Polish bilateral relations,” Zelensky tweeted. “We appreciate Poland’s unwavering support and the new military aid package for Ukraine, as well as a new form of cooperation aimed at larger-scale purchases for Ukrainian needs: a Polish loan for Ukraine. Prime Minister Tusk and I also discussed opportunities for future joint arms production. I thank Poland for supporting Ukraine.”
The meeting occurred on the same day that Russia launched around 40 missiles of various types in an attempt to evade Ukraine’s air defenses, Zelensky continued.
“We were able to intercept the majority of them, but there were still some hits,” Zelensky reported in a tweet. “Over 200 different objects were damaged: 130 residential buildings, all ordinary houses.”
At last count, 130 people were injured and received assistance. Unfortunately, 18 people were killed, Zelensky reported. The human toll of the attacks may rise as first responders search for additional victims in the rubble, he added.
Four Dividend-paying Uranium Investments to Consider Purchasing: Middle East Mayhem
In the Middle East, the Israeli army reported that 24 of its soldiers were killed in Gaza on Monday, Jan. 23, becoming the deadliest day for its forces since their ground operation began after the brutal Hamas assault on Oct. 7. The death toll included 21 reservists who died in an explosion caused by a rocket-propelled grenade fired by a militant squad to trigger the fatal blast, an Israel Defense Forces (IDF) official said.
The reservists were involved in a mission to allow residents of southern Israel to safely return to their homes after tens of thousands were evacuated following the Hamas attack on Oct. 7. Those reservists were killed in central Gaza close to the kibbutz of Kissufim on the Israeli side of the border, the IDF spokesman said.
Gaza’s Hamas-run Health Ministry reported that 195 Palestinians were killed on the same day. When the 1,200 people killed in Israel on Oct. 7 are added to the more than 26,000 reported dead by Hamas in Gaza, along with about 220 on Jan. 13, the total loss of human life soon will approach 30,000. In addition, the the Hamas Health Ministry reported 64,400 people have been wounded since the Oct. 7 invasion of Israel.
With world leaders expressing concern about the deaths and escalating violence in the region, the International Court of Justice ordered Israel on Friday, Jan. 26, to limit deaths and damage but did not demand a cease-fire in the Palestinian territory.
A lasting peace remains elusive in the Middle East where militant groups like Hamas in Gaza have a goal of annihilating Israel and killing its people. Based on reports from the Hamas-run Health Ministry and other sources, more than 90,000 people have been killed or injured since Hamas militants triggered a new war in the Middle East with its Oct. 7 attack. The Hamas attack focused on civilians in Israel, but the IDF responded militarily to try to eliminate the threat rather than await the next one without attempting to stop further incursions.
The four dividend-paying uranium investments to consider purchasing give investors a chance for temporary refuge from geopolitical risk in a global search for safe places to put their money during war times.
Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Attention Holiday Gift Buyers! Consider purchasing Paul’s inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for special pricing on multiple-book purchases or autographed copies! Follow Paul on Twitter @PaulDykewicz. He is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper, after writing for the Baltimore Business Journal and Crain Communications.