Why NYSE:SU provides a good dividend, while having solid fundamentals.

Our stock screener has singled out SUNCOR ENERGY INC (NYSE:SU) as a promising choice for dividend investors. NYSE:SU not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Understanding NYSE:SU's Dividend Score

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:SU scores a 8 out of 10:

• SU has a Yearly Dividend Yield of 4.15%, which is a nice return.
• Compared to an average industry Dividend Yield of 6.80, SU pays a bit more dividend than its industry peers.
• Compared to an average S&P500 Dividend Yield of 2.26, SU pays a better dividend.
• On average, the dividend of SU grows each year by 7.66%, which is quite nice.
• SU has been paying a dividend for at least 10 years, so it has a reliable track record.
• 36.86% 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.

Health Examination for NYSE:SU

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:SU, the assigned 6 reflects its health status:

• Looking at the Altman-Z score, with a value of 2.17, SU is in the better half of the industry, outperforming 60.78% of the companies in the same industry.
• SU has a debt to FCF ratio of 1.80. This is a very positive value and a sign of high solvency as it would only need 1.80 years to pay back of all of its debts.
• SU has a Debt to FCF ratio of 1.80. This is in the better half of the industry: SU outperforms 79.41% of its industry peers.
• A Debt/Equity ratio of 0.34 indicates that SU is not too dependend on debt financing.

Profitability Analysis for NYSE:SU

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

• The Return On Assets of SU (8.34%) is better than 68.63% of its industry peers.
• SU has a better Return On Equity (16.95%) than 63.24% of its industry peers.
• SU's Profit Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 61.98%, SU is in the better half of the industry, outperforming 68.14% of the companies in the same industry.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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.