NYSEAM:UEC - Post by User
Post by
mangoeon Dec 20, 2024 9:01am
61 Views
Post# 36371882
Bingo!🏆 Just like last year, Sprott shows that its year-end
Bingo!🏆 Just like last year, Sprott shows that its year-end Bingo!
Just like last year, Sprott shows that its year-end #Uranium ETF dividends were paid out today by issuing 1.08M new shares of $URNM and 520K shares of $URNJ.
There was NO selling of any ETF holdings to pay out the dividends.
Global X $URA did the same last year.
It's #Uranium ETF dividends time again with talk of how $URNM $URNJ $URA will raise cash to pay. REMINDER: Last year Sprott did not sell ANY Uranium stocks held in its ETF's to fund its Dividend Payments! 
Instead, Sprott were able to issue new shares of $URNM and $URNJ to Authorized Participants (AP's) who wanted to purchase ETF shares for cash that was used to pay the Dividends!
The dip that occurred last year, and is likely happening again this year, was explained by CEO John Ciampaglia as: "It was index arbs smashing the sector in anticipation of the ETF distributions."
Deep-pocketed investment firms last year took new large positions of 1.23M shares of $URNM, 450K shares of $URNJ, to completely cover the divy payments. That's what happens when a commodity is in a bull market.
This year's ETF distributions for Sprott are:
$1.32 for $URNM
$0.84 for $URNJ
Last year Global X Uranium/Nuclear ETF $URA (like $URNM) also avoided dumping $41.6 Million worth of its stock holdings by issuing 1.5 Million new units to investors willing to pay $URA cash to use for its divy payment. Likely to happen again this year!
I've not seen Global X announce their 2024 $URA distribution. Anybody have that?
Bottom line: Just like last year, don't expect to see any Uranium ETF's dumping their holdings into the market this month to pay for their year-end dividends. 
Cheers!