Cameco Corporation (USA) (CCJ): Falling Yen And Energy Imports Could Bring Back Nukes

The shares of both companies have sold off along with the broader pullback in the utility space. SCANA Corporation (NYSE:SCG) recently yielded around 4% and Southern around 4.6%, so both should interest income-oriented investors. However, yields in the 5% range would be even more interesting for those willing to be patient.

For Cameco Corporation (USA) (NYSE:CCJ), however, these new plants spells increasing demand. Particularly since they aren’t the only two plants being built around the world. China, for example, has a huge need for electricity as it grows, and nuclear is going to be a big part of its future.

New Plants

While Cameco Corporation (USA) (NYSE:CCJ) would be a direct beneficiary of an uptick in nuclear power use, Fukushima highlights the risks that older plants face. Newer designs, however, have advanced over the old ones. Investors looking for a more diversified nuclear play in a non-utility should consider General Electric Company (NYSE:GE), which provides “reactors, fuels and services globally.”

Broadly diversified industrial giant General Electric Company (NYSE:GE) has been in the nuclear industry for well over 50 years. So, if there is an uptick in demand for plants and services, General Electric Company (NYSE:GE) should be in line to benefit. Interestingly, the company is also a big player in the wind market and serves oil and natural gas drillers, too. So the company is a way to play multiple energy related trends at one time.

While it is still in the process of recovering from the 2007 to 2009 recession, the company has again begun to prove its worth. With an around 3.3% dividend yield and and the shares still trading well off of their all-time highs, the company is a good option for those with lower risk profiles.

More than Japan

Nuclear isn’t dead and it isn’t dying. Japan increasingly looks like it will have to restart at least some of its nuclear facilities. That would be a boon for the broader industry, but growth is coming from all over, including the U.S. market. Cameco Corporation (USA) (NYSE:CCJ) is the most direct bet on nuclear, but GE and utilities building nuclear plants, like SCANA Corporation (NYSE:SCG) and The Southern Company (NYSE:SO), are other ways to get involved.

The article Falling Yen And Energy Imports Could Bring Back Nukes originally appeared on and is written by Reuben Brewer.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Southern Company. The Motley Fool owns shares of General Electric Company. Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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