2. Global X Uranium ETF (NYSE: URA) We actually owned this ETF in The Oxford Income Letter for a short period, but when the market took a big dive, we got stopped out. The fund gives you exposure to a diversified group of uranium stocks, though there is a decent amount of concentration here - 26% of the portfolio is in Cameco (NYSE: CCJ), which is the biggest uranium miner in North America, and 9% is in the Sprott Physical Uranium Trust. Half of the assets are Canadian, but you still get plenty of international diversification. The fund also owns Australian, Japanese, South African, British, and even Kazakhstani stocks, among others. The last thing to mention here is that there's a variable dividend - and it varies very widely. When I first recommended the ETF in The Oxford Income Letter, the previous dividend yield was fairly high. The next dividend was quite low. It really is all over the place. If you're interested in this play, think of the dividend as a bonus. Any dividend that you receive is great, but that's not the main draw of this ETF. It's not a pure income play − it's a way to own a diversified group of uranium stocks. 3. BWX Technologies (NYSE: BWXT) BWX Technologies is a really cool company. It supplies nuclear components and fuel to the U.S. government and is the sole manufacturer of small modular reactors for U.S. submarines and aircraft carriers. There's nothing like a government contract for financial stability. The company also makes radioisotopes that are used in drugs, including a blockbuster drug by Novartis. BWX pays a very, very small dividend of less than 1%, so it's not a true income play. But as business improves, it could certainly increase its dividend over time. Overall, BWX is a very stable company. It's been profitable and cash flow positive for at least a decade, and I think it's really in a sweet spot as far as a nuclear play. Nuclear Energy Is Blasting Off Moving forward, I'm going to continue to look into companies that are involved in nuclear energy and uranium. I can't find another industry, energy-related or not, that has such widespread support. Right now, we have seemingly insatiable energy demand (which should grow exponentially), a very limited amount of supply, and a global movement to further embrace nuclear energy both in the public and in government. I think we're going to look back on nuclear energy 10 years from now and be surprised by just how big it got. Good investing, Marc |
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