The TSX Index is operating scorching, and whereas there’s positive to be a pullback in some unspecified time in the future, I nonetheless assume that almost all traders ought to rigorously weigh the dangers of sitting in an excessive amount of money, particularly when you think about how scorching inflation is operating.
Whereas loading up on bonds and money equivalents may offset among the blow of inflation, I’d argue that shares stay a unbelievable asset to personal, even when valuations are a bit on the stretched facet. As a substitute of shopping for all the market, although, with a TSX Index exchange-traded fund or one thing comparable, it’d make sense to uncover among the bargains (or first rate offers) that exist beneath the floor of the Canadian inventory market.
In fact, among the prime holdings we’re most conversant in are up huge previously 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 quick 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 successful 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 scorching via 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 chunk out of 1 / 4.
However, it’s the long-term story that issues most, particularly because the AI knowledge centre buildout powers curiosity in nuclear vitality and, with that, increased uranium demand. Cameco is again up and operating, however working dangers can occur, and traders must be ready for such volatility, particularly given the large ups and downs available from the identify. As big-money traders money out of Cameco, I feel it’s time to tackle a contrarian stance.
In fact, the dividend yields simply 0.16%, but it surely’s the dividend development potential and appreciation capability that must be the highest cause to punch a ticket. Certainly, a 50% dividend hike is huge, however once we’re speaking about such a small dividend, it simply doesn’t do it for passive-income traders.
Backside line
Both approach, I feel dividend development traders searching for upside momentum within the AI-driven nuclear renaissance ought to give the identify a more in-depth 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 velocity once more. As the most effective uranium performs on the planet, I’d deal with any dip as an awesome alternative to purchase.
