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 solid dividend yield with stable profitability and healthy financials, making it an attractive option for income-focused portfolios.

Dividend Strength

• Attractive Yield: SU offers a yearly dividend yield of 4.23%, well above the S&P 500 average of 2.34%.
• Reliable History: The company has paid dividends for at least 10 years, demonstrating a commitment to shareholder returns.
• Sustainable Payout: With a payout ratio of 46.04%, SU maintains a balance between rewarding shareholders and reinvesting in growth.
• Moderate Growth: The dividend has grown at an annual rate of 5.68%, indicating steady increases over time.

Profitability & Financial Health

• Solid Margins: SU’s 12.04% profit margin and 17.86% operating margin reflect efficient operations.
• Strong Solvency: A low debt-to-equity ratio of 0.29 and a healthy Altman-Z score of 2.18 suggest financial stability.
• Positive Cash Flow: The company has consistently generated positive operating cash flow over the past five years.

Valuation

SU trades at a P/E ratio of 10.16, below both the industry and S&P 500 averages, indicating reasonable valuation.

For a deeper analysis, review the full fundamental report on SU.

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Disclaimer

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