Suncor Energy Inc (NYSE:SU) - A Strong Dividend Stock with Solid Fundamentals

Suncor Energy Inc (NYSE:SU) stands out as a compelling choice for dividend investors, according to our Best Dividend stock screener. The company combines an attractive yield with stable profitability and a healthy financial position, making it a noteworthy candidate for income-focused portfolios.

Dividend Strength

• High Dividend Yield: SU offers a yield of 4.29%, well above the S&P 500 average of 2.40%.
• Reliable Payout History: The company has paid dividends for at least 10 consecutive years, demonstrating consistency.
• Sustainable Payout Ratio: At 46.04%, the payout ratio is manageable, leaving room for reinvestment and future growth.
• Modest Dividend Growth: The dividend has grown at an annualized rate of 5.68%, indicating gradual but steady increases.

Profitability & Financial Health

• Solid Profit Margins: SU maintains a 12.04% profit margin, outperforming 60% of its industry peers.
• Strong Return on Equity (ROE): At 13.59%, SU generates solid returns for shareholders.
• Healthy Balance Sheet: With a Debt-to-Equity ratio of 0.29, the company is not overly reliant on debt financing.
• Positive Cash Flow: SU has consistently generated positive operating cash flow over the past five years.

Valuation & Growth Outlook

• Reasonable Valuation: Trading at a P/E ratio of 10.35, SU appears undervalued compared to both industry and S&P 500 averages.
• Stable Earnings Growth: While revenue growth is modest, earnings per share (EPS) have grown at 14.08% annually over the past few years.

For a deeper dive into SU’s financials, review the full fundamental report here.

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Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.