Why the dividend investor may take a look at SUNCOR ENERGY INC (NYSE:SU).

Consider SUNCOR ENERGY INC (NYSE:SU) as a top pick for dividend investors, identified by our stock screening tool. SU shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Deciphering SU's Dividend Rating

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. SU has been assigned a 7 for dividend:

• SU has a Yearly Dividend Yield of 4.40%, which is a nice return.
• SU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
• 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.

Assessing Health for SU

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of SU, the assigned 7 reflects its health status:

• Looking at the Altman-Z score, with a value of 2.03, SU is in the better half of the industry, outperforming 69.81% of the companies in the same industry.
• SU has a debt to FCF ratio of 1.55. This is a very positive value and a sign of high solvency as it would only need 1.55 years to pay back of all of its debts.
• SU has a better Debt to FCF ratio (1.55) than 86.79% of its industry peers.
• A Debt/Equity ratio of 0.29 indicates that SU is not too dependend on debt financing.
• SU's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. SU outperforms 63.21% of its industry peers.
• The Current ratio of SU (1.33) is better than 60.85% of its industry peers.

Exploring SU's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. SU scores a 6 out of 10:

• The Return On Assets of SU (6.70%) is better than 67.45% of its industry peers.
• With a decent Return On Equity value of 13.51%, SU is doing good in the industry, outperforming 65.57% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 8.68%, SU is in the better half of the industry, outperforming 66.04% of the companies in the same industry.
• SU's Profit Margin has improved in the last couple of years.
• In the last couple of years the Operating Margin of SU has grown nicely.
• SU has a Gross Margin of 62.29%. This is in the better half of the industry: SU outperforms 66.98% of its industry peers.

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For an up to date full fundamental analysis you can check the fundamental report of SU

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.