Topic: How To Invest

Dividend Advisor Hotline – Friday, January 11, 2019

Article Excerpt

SUNCOR ENERGY INC., $40.35, Toronto symbol SU, is Canada’s largest integrated oil company, with its major projects in the Alberta oil sands. It also owns four refineries (three in Canada and one in Colorado), along with 1,500 Petro-Canada gas stations. Suncor last raised its dividend with the March 2018 payment. Investors now receive $0.36 a share, up 12.5% from $0.32. The new annual rate of $1.44 yields 3.6%. In 2019, the company expects to spend between $4.9 billion and $5.6 billion on exploration and upgrades to its existing operations. The midpoint of that range—$5.25 billion—is roughly equal to its 2018 spending. The Alberta government recently ordered oil producers in that province to cut their overall daily production by 325,000 barrels per day. That’s because a lack of pipeline capacity has increased the amount of oil in storage and depressed prices. Despite those cuts, Suncor still expects its 2019 production will rise roughly 10%, to between 780,000 and 820,000 barrels of oil equivalent per day…

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