Topic: How To Invest

Dividend Advisor Hotline – Friday, April 3, 2020

Article Excerpt

SUNCOR ENERGY INC., $22.98, Toronto symbol SU, remains a buy for long-term gains. The company is Canada’s largest integrated oil company, with major projects in the Alberta oil sands. Investors also gain exposure to Suncor’s four refineries (three in Canada and one in Colorado), along with 1,500 Petro-Canada gas stations. In response to sharply lower oil prices, the company is scaling back some of its operations and deferring planned upgrades and new projects. As a result, Suncor now expects to spend between $3.9 billion and $4.5 billion in 2020. That’s down $1.5 billion, or 26%, from its original plan. In addition to the lower capital spending, the company plans to cut $1 billion from its operating costs this year. It’s also suspending share buybacks. Those spending cuts—which total $2.5 billion—will help Suncor cover your dividend payments. In fact, the company just raised your quarterly dividend by 10.7%, to $0.465 a share from $0.42. Due to the stock’s 36% drop in the past month, the new…

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