Activist pressure should boost your income

Article Excerpt

Suncor recently agreed to a new deal with activist investor Elliott Management. That could lead to the sale or spinoff of its gas stations. Even with a sale, it’s likely the company would return any cash from the deal to investors through higher dividends and share buybacks. SUNCOR ENERGY INC. $41 remains a buy. The company (Toronto symbol SU; Cyclical-Growth Payer Portfolio, Resources sector; Shares outstanding: 1.4 billion; Market cap: $57.4 billion; Dividend yield: 4.6%; Dividend Sustainability Rating: Average; is Canada’s largest integrated oil firm, with major projects in the Alberta oil sands. It also operates four refineries (three in Canada and one in Colorado), along with 1,877 Petro-Canada retail and wholesale locations. With the June 2022 payment, Suncor raised your quarterly dividend by 12%, to $0.47 from $0.42 in the previous quarter. It is the highest quarterly payment in the company’s history. The new annual rate of $1.88 yields a high 4.6%. Thanks to rising production and oil prices, Suncor’s revenue rose 20.6%, from $31.95…

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