insane dividends

[wzebra33]

Cameco Corp. (TSX: CCO.TO) will boost its dividend by 43 per cent next year, as the uranium giant sees strong growth ahead for the raw material used to power nuclear reactors.

"The substantial increase in our annual dividend demonstrates our confidence in our business and in the long-term fundamentals of the uranium market," Cameco CEO Jerry Grandey said in a statement Thursday.

"Cameco is the only investment opportunity in our industry with the financial strength to substantially increase dividends while undertaking an ambitious growth program."

Beginning in the first quarter of fiscal 2011, Cameco's quarterly dividend will rise to 10 cents per share from seven cents per share in 2010. On an annualized basis, the dividend of 40 cents per share will compare to 28 cents per share this year.

Last month, Cameco raised its full-year production guidance from 21.5 million pounds of uranium to 22 million, while it lowered its capital spending plan from $510 million to about $475 million due to changes in the scheduling of some projects.

The Saskatoon-based company said it earned $98 million, or 25 cents per share, on $419 million in revenue for the quarter ended Sept. 30. That was down from $172 million or 44 cents per share on $518 million in sales a year earlier.

Cameco also announced last month that it has secured a long-term supply contract with Chinese nuclear company China Guangdong Nuclear Power Holding Co. Ltd. for 29 million pounds of uranium concentrate through 2025. It didn't disclose the value of the deal, as it is "commercially sensitive" information.

Cameco and other major global uranium producers such as BHP Billiton and Rio Tinto are cashing in on soaring uranium demand from China and other parts of Asia as those countries embark on a big nuclear power plant building boom to meet future electricity demands from their soaring economies.