The TSX Index is working scorching, and whereas there’s certain to be a pullback in some unspecified time in the future, I nonetheless assume that almost all traders ought to fastidiously weigh the dangers of sitting in an excessive amount of money, particularly when you think about how scorching inflation is working.
Whereas loading up on bonds and money equivalents might offset a number of 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 the whole market, although, with a TSX Index exchange-traded fund or one thing related, it’d make sense to uncover a number of the bargains (or first rate offers) that exist beneath the floor of the Canadian inventory market.
After all, a number of the high holdings we’re most acquainted with are up huge prior to now yr, and whereas I view the names as greater than value 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 value selecting 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 trying to keep scorching by means of the summer season months, I do assume that one title throughout 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, they usually might 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 power and, with that, larger uranium demand. Cameco is again up and working, however working dangers can occur, and traders ought to be ready for such volatility, particularly given the massive ups and downs available from the title. As big-money traders money out of Cameco, I feel it’s time to tackle a contrarian stance.
After all, the dividend yields simply 0.16%, but it surely’s the dividend development potential and appreciation capability that ought to be the highest motive 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 traders.
Backside line
Both method, I feel dividend development traders on the lookout for upside momentum within the AI-driven nuclear renaissance ought to give the title a more in-depth look whereas shares look to climb larger once more after a reasonably robust tumble. As we head into the second half, issues might 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 a terrific alternative to purchase.
