The Top TSX Stock to Buy Now As Canadians Shift Investments Back Home

Energy stocks are a solid buy, and Cameco stock is one of the best Canadian stocks out there for long-term income.

When Canadians bring cash home, many wonder where to invest it safely. With uncertain markets and shifting interest rates, finding a sturdy investment becomes a priority. Cameco (TSX: CCO) fits the bill. It may not offer a high payout, but its fundamentals are rock solid and ideal for cautious investors.

Canadian flag

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About Cameco

Cameco is a well-known uranium producer with global operations. It pays a modest dividend of roughly $0.16 per share annually. That’s not flashy, but it’s reliable. With a payout ratio of around 28%, it’s sustainable even if earnings dip. The focus here isn’t high income: it’s stability.

Safety starts with strong earnings and cash flow. In the first quarter of 2025, it reported net income of $70 million, turning around from a loss a year ago. Revenue rose about 24% from last year, driven by higher uranium prices and firm demand. It generated $110 million in operating cash flow, a boost of 75% from a year earlier. That cash helps fund operations, debt repayment, and dividend payments.

Cameco’s balance sheet also inspires confidence. Total cash and equivalents reached $361 million, with a debt‑to‑equity ratio of about 15%. That’s healthy for a TSX resource stock. It even maintains a $1 billion undrawn credit facility, offering flexibility if needed.

More to come

Global uranium demand underpins its long-term outlook. As countries aim to meet clean energy goals, nuclear power is gaining attention. Cameco, as a key supplier, benefits from long-term contracts and an expanding customer base. It’s managed to hold up earnings even as spot prices fluctuate.

Some might question its valuation as shares trade near 152  times earnings at writing. On the surface, that seems high. But that figure reflects a rebound from prior losses. Plus, its liquidity, earnings bounce-back, and stable dividend help justify that premium.

In uncertain markets, risk control matters. Cameco can also pull back production or shift focus if uranium prices fall. It weathered the pandemic well and came through intact. That proven resilience supports its bottom line and dividend.

Bottom line

For investors seeking stability in uncertain times, a safe investment like Cameco has appeal. It may lack the excitement of high-yield TSX stocks, but it delivers consistent income, a solid balance sheet, and exposure to a key global commodity. It’s not the fastest growth play, but it’s dependable.

Today, as Canadians shift money back home, bringing greater market focus, a TSX stock like Cameco offers comfort. It provides a safety footing and sensible growth. You don’t need wild returns, just steady, reliable performance. Cameco can deliver that.

By choosing Cameco now, you’re opting for safety over speculation, fundamentals over hype. It’s a safe haven that stands ready as Canadians refocus on home investments. That’s the kind of dependable TSX stock worth holding tight.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Cameco. The Motley Fool has a disclosure policy.

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