Is NYSE:SU suited for dividend investing?

Last update: Jun 3, 2024

Our stock screening tool has identified SUNCOR ENERGY INC (NYSE:SU) as a strong dividend contender with robust fundamentals. NYSE:SU exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve 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. NYSE:SU has achieved a 7 out of 10:

Compared to an average industry Dividend Yield of 5.88, SU pays a bit more dividend than its industry peers.
SU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
On average, the dividend of SU grows each year by 7.66%, which is quite nice.
SU has paid a dividend for at least 10 years, which is a reliable track record.
35.16% of the earnings are spent on dividend by SU. This is a low number and sustainable payout ratio.
The dividend of SU is growing, but earnings are growing more, so the dividend growth is sustainable.

Deciphering NYSE:SU's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:SU was assigned a score of 5 for health:

The Debt to FCF ratio of SU is 2.00, which is a good value as it means it would take SU, 2.00 years of fcf income to pay off all of its debts.
SU's Debt to FCF ratio of 2.00 is fine compared to the rest of the industry. SU outperforms 75.47% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that SU is not too dependend on debt financing.
SU's Current ratio of 1.51 is fine compared to the rest of the industry. SU outperforms 63.21% of its industry peers.

Profitability Examination for NYSE:SU

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:SU, the assigned 5 is noteworthy for profitability:

With a decent Return On Assets value of 8.80%, SU is doing good in the industry, outperforming 64.62% of the companies in the same industry.
In the last couple of years the Profit Margin of SU has grown nicely.
SU has a Gross Margin of 62.66%. This is in the better half of the industry: SU outperforms 66.51% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.