suncor stock dividend
The company has spent years investing in its business. One major hurdle that Suncor and all oil and gas stocks are facing is the negative impact that they are having on the environment. “The … “We understand that if oil prices and margins rebound, SU can grow back the dividend, and the decision to cut was made out of an abundance of caution.”. 5G has the potential to radically change our lives and society as we know it, but if you’re an investor, the implications are even greater — and potentially much more lucrative. This was a move that, only a couple of years ago, would be unthinkable. While tech stocks have driven the recovery in broader markets, oil and energy companies are languishing at multi-year lows. In spite of this, we cannot lose sight of the fact that this is one solid company. Please read the Privacy Statement and Terms of Service for more information. © 2020 The Motley Fool Canada, ULC. All rights reserved. If Suncor is making such a significant cut to its dividend, it is not only a harbinger of worse to come for the energy patch, but for all Canadian dividend stocks. Byrne expected Suncor to further cut capex (which occurred) and reassess its dividend in July. Suncor’s dividend cut has eliminated almost $1.3 billion from Canada’s economy. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. This is a highly efficient technology that reduces waste. “Ultimately, the dividend cut saves SU roughly C$1.5 billion per year, which is on top of a C$400 million cut in its capex.”, Sees Suncor’s action as “ultimately the right thing to do.”. Suncor increased dividends for 18 consecutive years before COVID-19 decimated this capital-intensive sector. Being an integrated oil company, Suncor has exposure not only to the production side of the business, but also to the refining and marketing business. Today, Suncor is yielding 5.3%. Please read the Privacy Statement and Terms of Service for more information. It is worth noting, however, that Canada’s Big Six banks have far more conservative dividend policies than their Australian counterparts, giving them substantially lower payout ratios. Suncor can refine the crude it produces from Canadian Tar Sands, allowing it to generate robust profit margins on the refined products. There are signs that the impending recession triggered by the pandemic will spark the worst recession since the Great Depression, which will in turn weigh heavily on corporate earnings. This is your chance to get in early on what could prove to be very special investment advice. I understand I can unsubscribe from these updates at any time. SU's most recent quarterly dividend payment was made to shareholders of record on Friday, September 25. Its price-to-sales multiple is 0.89 while it has a book ratio of 0.75. It has a solid strategy built on risk minimization and sustainability. Suncor’s value is reflected in its price-to-book multiple of 0.7 times. Here’s why Suncor is a top value stock to buy right now. Warren Buffett remains bullish on Suncor Energy and increased his stake in the heavyweight in Q2. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. 37% OFF: Buy Pembina Pipeline Stock Right Now for an 8.8% Dividend Yield. Simply click the link below to grab your free copy and discover all 5 of these stocks now. Fool contributor Matt Smith has no position in any of the stocks mentioned. Suncor reported a quarterly loss of close to $600 million in Q2. All rights reserved. “The surprise is less that the dividend was reduced, and more the timing,” UBS analyst Lloyd Byrne told clients in a note. But I have found it in Suncor stock. Suncor Energy pays an annual dividend of $0.64 per share, with a dividend yield of 5.56%. Please read the Privacy Statement and Terms of Service for more information. The Canadian west coast ports also provide Suncor access to demand markets in Asia, one of the fastest-growing regions in the world. I understand I can unsubscribe from these updates at any time. Suncor stock provides a generous dividend yield of 5.3% Suncor cut its dividend earlier this year. Fool contributor Karen Thomas has no position in any of the stocks mentioned. Suncor Energy (TSX:SU)(NYSE:SU) has been hit hard in recent years. Suncor Energy Inc. electing to cut its quarterly dividend 55% is causing analysts to question the timing of the move, however most see it as a necessary step to preserve liquidity. Meanwhile, investors may also turn their focus to peer Canadian Natural Resources Ltd.’s dividend, according to Morgan Stanley, with the company’s earnings report due Thursday morning. The energy giant has lost 48% for the year to date compared to 15% for the S&P/TSX Composite Index. Not to alarm you, but you’re about to miss an important event. This was a move that, only a couple of years ago, would be unthinkable. This equates to around 4% of annual GDP and is a huge chunk of change for an economy failing under the weight of the coronavirus pandemic. Suncor ended Q2 with a cash balance of $1.9 billion and total debt of $22 billion, giving it enough liquidity to ride out the downturn. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. Returns since inception, October 2013. Canadian dividend stocks have long attracted the interest of investors seeking to build wealth and establish a sustainable passive income stream. For its part, Suncor is trying to invest in the future. To learn more about it and its revolutionary potential to change the industry — and potentially your bank account — click on the link below to get the full scoop. Suncor Energy (TSE:SU) Dividend Information Suncor Energy pays an annual dividend of C$0.84 per share, with a dividend yield of 5.36%. The stock trades well below its book value of over $25. The price of oil has hovered around the $40 level since June after having been crushed earlier this year. Canadian companies pay dividends thought to be worth more than $62 billion annually. This should light a fire under the stock and send it higher. Returns since inception, October 2013. Suncor Energy (SU) Declares $0.42 Quarterly Dividend; 5.5% Yield. Its stated greenhouse gas emissions goal is to “harness technology and innovation to reduce our emission intensity by 30% by 2030.”. This shocked the market because the energy giant, unlike many of its peers, left its dividend untouched even after oil prices collapsed in 2015. Suncor was the pillar of strength in the oil and gas world. At the time of writing, Suncor stock trades near $16.50 per share. Just Released! Simply click here to discover how you can take advantage of this. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. If these fears come true, investors can expect oil stocks to move lower by the end of 2020. 5G is one of the greatest arrivals in technology since the birth of the internet. It might find it difficult to service interest obligations due to negative cash flows and profit margins. Suncor is top value stock to buy for the reasons discussed in this article. Suncor’s strong balance sheet, low operating expenses and prudent capital management has long been held as a model for the oil sands industry to follow. OPEC countries recently provided a grim forecast and expect oil demand to be tepid in the upcoming months. Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share. So is Suncor Energy stock a good contrarian bet or will its recovery be delayed amid a sluggish macro-environment? SU's most recent quarterly dividend payment was made to shareholders of record on Friday, September 25. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. The Motley Fool Canada » Dividend Stocks » Canadian Dividend Stock Suncor (TSX:SU) Slashes Dividend: More Cuts Ahead, Matt Smith | May 14, 2020 | More on: SU SU. Suncor has even dipped its toes into renewable energy such as wind and biofuels. Its debt level is reasonable and in line with its peers. A stock’s dividend reliability is determined by a healthy payout ratio that is higher than other stocks. Suncor is somewhat unique for its integrated business model, which proves very useful in difficult times like these. Suncor is an integrated company which enables it to take advantage of higher oil prices by increasing drilling activities.