Suncor Energy Inc (NYSE:SU) – A Reliable Dividend Stock Worth Considering

Suncor Energy Inc (NYSE:SU) stands out as a strong candidate for dividend investors, according to our Best Dividend Stocks screen. The company combines a high dividend yield with solid financial health and reasonable profitability, making it an appealing choice for income-focused portfolios.

Key Strengths for Dividend Investors

• Attractive Dividend Yield: SU offers a yearly dividend yield of 4.68%, well above the S&P 500 average of 2.40%. This makes it a compelling option for investors seeking steady income.
• Sustainable Payout Ratio: The company pays out 46.04% of its income as dividends, which is manageable and suggests the dividend is well-supported by earnings.
• Reliable Track Record: SU has maintained dividend payments for at least 10 years, demonstrating a commitment to returning capital to shareholders.
• Growing Dividend: While not aggressive, the dividend has grown at an annual rate of 5.68%, indicating modest but consistent increases.

Financial Health and Profitability

• Strong Balance Sheet: SU has a Debt/Equity ratio of 0.29, indicating a conservative approach to leverage. The company also generates sufficient cash flow to cover its obligations comfortably.
• Decent Profitability: With a Return on Equity (ROE) of 13.59% and a Profit Margin of 12.04%, SU performs better than many industry peers.
• Reasonable Valuation: Trading at a P/E ratio of 9.20, SU appears undervalued compared to both its industry and the broader market.

For a deeper look at SU’s financials, check the full fundamental report.

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Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own research before making investment decisions.