Topic: How To Invest

Dividend Advisor Hotline – Friday, August 25, 2023

Article Excerpt

SUNCOR ENERGY INC., $44.77, Toronto symbol SU, is a buy. The company 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 1,875 Petro-Canada gas stations. With the December 2022 payment, Suncor raised your quarterly dividend by 10.6%, to $0.52 a share from $0.47. The new annual rate of $2.08 yields a high 4.6%. Suncor’s average daily oil production in the three months ended June 30, 2023, rose 3.0%, to 741,900 barrels a day from 720,200 a year earlier. However, the company’s benchmark price for oil sands crude fell 32.0%. As a result, revenue in the quarter declined 27.7%, to $11.72 billion from $16.20 billion. Even so, that beat the consensus forecast of $10.65 billion. Overall cash flow dropped 50.3%, to $2.66 billion from $5.35 billion. Due to fewer shares outstanding, cash flow per share declined at a slower rate of 46.4%, to $2.03 from $3.80. Still, that…