This is why the price of oil remains under pressure. The WTI benchmark read US$15 at the time of writing — a strong recovery from historic negative territory earlier this week. Management recently shored up the company’s liquidity by $3.75 billion in April. Although Suncor stock has registered some price recovery lately, the current dividend yield still reads 8.6%. Suncor has never cut the dividend since it started paying one in 1992, and it has raised the dividend every year for 15 years. 5 year dividend-adjusted return of FTS vs the TSX. But the same can’t be expected at WTI readings below US$20. SU’s dividend has a Safety Score of 43, which is close to average but better than about 90% of all other dividend-paying energy companies in our database. Published on 1/9/2016 Warren Buffett only owns two stocks in the energy sector, and they both pay a dividend – Suncor (SU) and Phillips 66 (PSX).
Negative Oil Prices: Are Oil Stocks Too Cheap to Ignore? All of these advantages are allowing SU to make opportunistic investments while practically every other energy is significantly curtailing investment dollars. Copyright Notice | However, long-term investors should embrace this crash, because bear markets can potentially allow you to make millions. Once oil prices begin to normalize and SU’s growth projects start ramping up (end of 2017), dividend growth potential should meaningfully improve. Our Purpose & Values. Suncor Energy is Canada’s largest integrated energy firm with production, refining, and retail operations.
Thank you for subscribing to Wealthy Retirement. And then, you know, I think our track record speaks for itself on the third bucket, which is we return money to shareholders.
The second part then has been about a very disciplined allocation of capital. Like us on Facebook to see similar stories, Hong Kong Keeps Covid Measures; U.S. Trends Worsen: Virus Update, Whole Foods CEO John Mackey thinks capitalism should rebrand to 'innovationism' and believes it's responsible for 'lifting humanity literally out of the dirt'. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. Show full articles without "Continue Reading" button for {0} hours. Because it does not flow like conventional crude oil, it must be mined or heated underground before it can be processed. Oil is now at its lowest price in two decades.
Consensus earnings estimates call for SU’s profits to come in close to where they were during 2009. You can unsubscribe at any time. With the crash in oil, SU’s profit mix through the first nine months of 2015 was 6% oil sands, 6% exploration & production, and 88% refining and marketing. We are also very impressed with the communication of SU’s management team. The company also completed its first oil sands plant in 1967. However, much like Buffett hopes a new stock purchase remains stagnant or even declines so he can buy more, part of us hopes that today’s oil environment persists awhile longer to set up an even brighter long-term outlook for SU. Contrarian types, however, see some opportunities. Suncor Energy Inc., Stock Price. TSX:SU $15.950 0.450. Canadian Oil Sands owns 37% of Syncrude, a project which mines and upgrades bitumen in Alberta and has decades of valuable supply. Is Suncor’s dividend still safe after the recent crude oil price crash? But the same can’t be expected at WTI readings below US$20. Marc’s mission is to help every one of them generate a safe and steady stream of retirement income that never runs out. I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls.
Dividend-growth companies like Suncor have decided to smoothen their dividend payouts and declare annual increases to improve dividend certainty. That means that there is plenty of room to raise the dividend, even if free cash flow slips in 2019.
Therefore, management has the choice of either maintaining the dividend with a modest debt increase or cutting the dividend but at the cost of disappointing the capital markets. The 2020 dividend could require a nearly $3 billion cash outflow. Planes are grounded. Integrated oil firm Suncor Energy’s (TSX:SU)(NYSE:SU) stock price plunged 60% lower to hit historic multi-year lows in March, as investors fled to safety amid a market crash. Contrarian investors might want to start nibbling at this level. In 2018, it is expected to be at the highest level in at least a decade. We suppose that SU’s risk is making an “opportunistic” acquisition that backfires (e.g. Suncor Energy pays an annual dividend of C$1.52 per share, with a dividend yield of 9.50%.
The organic growth list is a very long list, which takes us forward for the next, you know, 20-plus years, and we’ve got some of these targets. Please read the Privacy Statement and Terms of Service for more information.
SU’s long-term dividend and fundamental data charts can all be seen by clicking here. So we’re letting those compete.
Companies that pay dividends tend to … All things considered, SU shares many qualities with some of our favorite blue chip dividend stocks. The company has a terrific dividend-paying track record. The company has done an excellent job reducing costs despite enjoying consistent growth in oil production, which is 9% higher than it was in 2014. There’s a social contract between companies and the investor community as far as dividends are concerned. Rather, income investors like the bond-like cash flows from established Dividend Aristocrats. Simply click here to discover how you can take advantage of this.
Companies that pay dividends tend to have consistent positive net income.
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