Is NYSE:SU a Good Fit for Dividend Investing?

Last update: Jun 25, 2024

Discover SUNCOR ENERGY INC (NYSE:SU)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:SU showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Dividend Assessment of NYSE:SU

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:SU has been awarded a 8 for its dividend quality:

With a Yearly Dividend Yield of 4.29%, SU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.16, 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 2.38.
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.
SU pays out 35.16% of its income as dividend. This is a sustainable payout ratio.
SU's earnings are growing more than its dividend. This makes the dividend growth sustainable.

ChartMill's Evaluation of Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:SU has earned a 6 out of 10:

SU has a Altman-Z score of 2.16. This is in the better half of the industry: SU outperforms 60.66% of its industry peers.
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 has a Debt to FCF ratio of 2.00. This is in the better half of the industry: SU outperforms 75.36% of its industry peers.
SU has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
SU has a Current ratio of 1.51. This is in the better half of the industry: SU outperforms 63.98% of its industry peers.

Analyzing Profitability Metrics

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:

SU has a better Return On Assets (8.80%) than 65.40% of its industry peers.
In the last couple of years the Profit Margin of SU has grown nicely.
The Gross Margin of SU (62.66%) is better than 66.82% of its industry peers.

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

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.