Topic: How To Invest

Dividend Advisor Hotline – Thursday, April 6, 2023

Article Excerpt

SUNCOR ENERGY INC., $42.65, 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 1,590 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 4.9%. What’s more, it plans to further increase value for shareholders by earmarking 75% of its free cash flow for share buybacks, up from the current 50%. Suncor is part of a joint venture that is building a facility near Montreal, called Varennes Carbon Recycling, that will convert wood and other waste materials into biofuels and other chemicals. It will also produce hydrogen from non-fossil-fuel sources. The company has not yet disclosed its stake in the venture, but the other partners include Shell Canada, Proman Canada Inc. and the Quebec and federal governments. The…