Topic: How To Invest

Dividend Advisor Hotline – Friday, January 6, 2023

Article Excerpt

IMPERIAL OIL LTD., $64.90, Toronto symbol IMO, is a buy. This company gets about 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. With the January 1, 2023 payment, Imperial raised your quarterly dividend by 29.4%, to $0.44 a share from $0.34. The new annual rate of $1.76 yields 2.7%. Imperial now plans to spend $1.7 billion on capital upgrades and exploration in 2023. That’s $300 million, or 21.4%, higher than its planned 2022 spending of $1.4 billion. Part of that extra spending is related to its planned “renewable” diesel fuel complex at its Strathcona refinery near Edmonton. Renewable diesel is a biofuel produced from wood, crops and vegetable oils. Imperial also continues to expand and upgrade its Cold Lake and Kearl oil sands…