Topic: How To Invest

The Successful Investor Hotline – Friday, May 8, 2020

Article Excerpt

SUNCOR ENERGY INC., $23.83, Toronto symbol SU, remains a buy for the Resources portion of your portfolio. The company is Canada’s largest integrated oil company, with major projects in the Alberta oil sands. Investors also gain exposure to Suncor’s four refineries (three in Canada and one in Colorado), along with 1,500 Petro-Canada gas stations. COVID-19 and the price war between oil-producing countries Saudi Arabia and Russia have combined to cut crude oil prices by about 50% in the past two months. To conserve cash, Suncor is cutting its quarterly dividend by 54.8%. Starting with the June 2020 payment, investors will receive $0.21 a share instead of $0.465. The new annual rate of $0.84 yields 3.5%. The dividend cut should save Suncor roughly $1.15 billion for the rest of 2020. The company is also cutting this year’s capital spending plan by a further $400 million, to between $3.6 billion and $4.0 billion. In addition, it aims to trim $1 billion from this year’s operating costs. Due…

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