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Why NYSE:SU is a Top Pick for Dividend Investors.

By Mill Chart

Last update: May 13, 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.

Exploring NYSE:SU's Dividend

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:

  • SU's Dividend Yield is a higher than the industry average which is at 5.86.
  • Compared to an average S&P500 Dividend Yield of 2.34, SU pays a better dividend.
  • On average, the dividend of SU grows each year by 7.66%, 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 33.14% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of SU is growing, but earnings are growing more, so the dividend growth is sustainable.

Assessing Health 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 6 out of 10:

  • SU's Altman-Z score of 2.19 is fine compared to the rest of the industry. SU outperforms 60.56% of its industry peers.
  • SU has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as SU would need 2.40 years to pay back of all of its debts.
  • SU's Debt to FCF ratio of 2.40 is fine compared to the rest of the industry. SU outperforms 72.30% of its industry peers.
  • A Debt/Equity ratio of 0.35 indicates that SU is not too dependend on debt financing.
  • SU has a Current ratio of 1.44. This is in the better half of the industry: SU outperforms 60.56% of its industry peers.

A Closer Look at Profitability 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 5 is noteworthy for profitability:

  • SU has a better Return On Assets (9.37%) than 64.32% of its industry peers.
  • With a decent Return On Equity value of 19.17%, SU is doing good in the industry, outperforming 61.50% of the companies in the same industry.
  • In the last couple of years the Profit Margin of SU has grown nicely.
  • SU has a better Gross Margin (62.90%) than 66.20% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of SU contains the most current fundamental analsysis.


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.