The TSX Index is working sizzling, and whereas there’s certain to be a pullback in some unspecified time in the future, I nonetheless assume that almost all buyers ought to fastidiously weigh the dangers of sitting in an excessive amount of money, particularly when you think about how sizzling inflation is working.
Whereas loading up on bonds and money equivalents may offset among the blow of inflation, I’d argue that shares stay a incredible asset to personal, even when valuations are a bit on the stretched aspect. As an alternative of shopping for all the market, although, with a TSX Index exchange-traded fund or one thing comparable, it would make sense to uncover among the bargains (or respectable offers) that exist beneath the floor of the Canadian inventory market.
After all, among the prime holdings we’re most conversant in are up huge up to now 12 months, and whereas I view the names as greater than price holding, I feel that there are corrected shares (a few of that are simply getting back from a short fall right into a bear market, which is a 20% decline from peak ranges) which might be price choosing up on the dip. Certainly, shopping for the dip has been a profitable technique amid this multi-year bull run within the Canadian market.
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Cameco: A fierce dividend grower that’s contemporary off a bearish plunge
And whereas there aren’t as many names which might be down and out now that the TSX Index is seeking to keep sizzling by the summer season months, I do assume that one identify inside the commodity scene stands out. Enter shares of Cameco (TSX:CCO), that are down round 19% from all-time highs after plunging near 22% from peak to trough. Certainly, it’s been a turbulent 2026 for the uranium producer.
And whereas the premium uranium miner was lengthy overdue for such a cooldown interval, I feel the dip has opened the door for a terrific entry level. Certainly, provide disruptions do occur, and so they may take an enormous chew out of 1 / 4.
However, it’s the long-term story that issues most, particularly because the AI information centre buildout powers curiosity in nuclear power and, with that, increased uranium demand. Cameco is again up and working, however working dangers can occur, and buyers ought to be ready for such volatility, particularly given the large ups and downs available from the identify. As big-money buyers money out of Cameco, I feel it’s time to tackle a contrarian stance.
After all, the dividend yields simply 0.16%, however it’s the dividend development potential and appreciation capability that ought to be the highest purpose to punch a ticket. Certainly, a 50% dividend hike is huge, however after we’re speaking about such a small dividend, it simply doesn’t do it for passive-income buyers.
Backside line
Both method, I feel dividend development buyers on the lookout for upside momentum within the AI-driven nuclear renaissance ought to give the identify a better look whereas shares look to climb increased once more after a reasonably robust tumble. As we head into the second half, issues may go smoother because the agency will get going at full pace once more. As among the best uranium performs on this planet, I’d deal with any dip as an awesome alternative to purchase.
