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Balancing Dividends and Fundamentals: The Case of NYSE:SU.

By Mill Chart

Last update: Feb 22, 2024

Our stock screener has spotted SUNCOR ENERGY INC (NYSE:SU) as a good dividend stock with solid fundamentals. NYSE:SU shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

What does the Dividend looks like for NYSE:SU

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:SU was assigned a score of 7 for dividend:

  • With a Yearly Dividend Yield of 4.94%, SU is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 8.11, SU pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 2.48, SU pays a better dividend.
  • On average, the dividend of SU grows each year by 7.80%, which is quite nice.
  • SU has been paying a dividend for at least 10 years, so it has a reliable track record.
  • SU pays out 33.41% of its income as dividend. This is a sustainable payout ratio.

Assessing Health Metrics for NYSE:SU

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:SU scores a 4 out of 10:

  • The Debt to FCF ratio of SU is 2.48, which is a good value as it means it would take SU, 2.48 years of fcf income to pay off all of its debts.
  • SU has a better Debt to FCF ratio (2.48) than 66.98% of its industry peers.
  • SU has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.

What does the Profitability looks like for NYSE:SU

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:SU, the assigned 4 is noteworthy for profitability:

  • In the last couple of years the Profit Margin of SU has grown nicely.
  • In the last couple of years the Operating Margin of SU has grown nicely.
  • SU has a better Gross Margin (64.55%) than 65.58% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of SU for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.