Is SUNCOR ENERGY INC (NYSE:SU) a Good Fit for Dividend Investing?

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

Looking at the Dividend

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. SU has achieved a 7 out of 10:

• SU has a Yearly Dividend Yield of 4.41%, which is a nice return.
• SU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
• SU has been paying a dividend for at least 10 years, so it has a reliable track record.
• The dividend of SU is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Assessment of SU

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. SU has received a 7 out of 10:

• The Altman-Z score of SU (2.17) is better than 70.00% of its industry peers.
• The Debt to FCF ratio of SU is 1.55, which is an excellent value as it means it would take SU, only 1.55 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.55, SU belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
• A Debt/Equity ratio of 0.29 indicates that SU is not too dependend on debt financing.
• SU has a Debt to Equity ratio of 0.29. This is in the better half of the industry: SU outperforms 62.86% of its industry peers.
• With a decent Current ratio value of 1.33, SU is doing good in the industry, outperforming 60.48% of the companies in the same industry.

Exploring SU's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. SU has earned a 6 out of 10:

• SU has a better Return On Assets (6.70%) than 66.19% of its industry peers.
• With a decent Return On Equity value of 13.51%, SU is doing good in the industry, outperforming 63.33% of the companies in the same industry.
• SU has a better Return On Invested Capital (8.68%) than 65.24% of its industry peers.
• SU's Profit Margin has improved in the last couple of years.
• SU's Operating Margin has improved in the last couple of years.
• SU has a better Gross Margin (62.29%) than 66.67% of its industry peers.

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

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.