Topic: How To Invest

Dividend Advisor Hotline – Friday, February 9, 2024

Article Excerpt

IMPERIAL OIL LTD., $78.50, Toronto symbol IMO, is a buy. The company gets over 90% of its production from oil sands operations in Alberta. Imperial also has conventional oil and natural gas operations in the West and holds stakes in offshore projects in Atlantic Canada. Its other operations include three refineries (one in Alberta, two in Ontario) and a petrochemical plant in Sarnia, Ontario. Imperial is now raising your quarterly dividend by 20.0% with the April 2024 payment, to $0.60 a share from $0.50. The new annual rate of $2.40 yields 3.1%. In the quarter ended December 31, 2023, Imperial produced an average 452,000 barrels of oil equivalent per day. That’s up 2.5% from 441,000 a year earlier. However, due to lower realized crude prices, its revenue in the quarter fell 9.3%, to $13.11 billion from $14.45 billion a year earlier. Cash flow also dropped, down 26.6% to $1.80 billion from $2.45 billion. Due to fewer shares outstanding, cash flow per share declined at a slower…