Can Cameco Corp's 4.1% Dividend Yield Survive?
About three months ago I argued that the world's leading uranium producer would be better off suspending its dividend than maintaining it. While Cameco Corp (NYSE: CCJ) shareholders certainly aren't complaining about the 4.1% dividend yield, given the historically weak uranium market and no recovery in sight, it may make more sense to conserve cash today that could be invested if and when the rut ends.
Well, another quarter has passed, and management has provided an update to full-year 2017 expectations. Revenue is expected to increase, while earnings are expected to be below 2016 levels. However -- and most important as far as the dividend is concerned -- operating cash flow is expected to increase from the year-ago period.
Does that mean Cameco Corp's dividend will survive after all?
Source: Fool.com
Cameco Corp. Stock
With 6 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
As a result the target price of 60 € shows a positive potential of 31.68% compared to the current price of 45.57 € for Cameco Corp..
