Is NYSE:SU suited for dividend investing?

Consider SUNCOR ENERGY INC (NYSE:SU) as a top pick for dividend investors, identified by our stock screening tool. NYSE:SU shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

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 4.08%, SU is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 6.56, SU pays a bit more dividend than its industry peers.
• Compared to an average S&P500 Dividend Yield of 2.28, SU pays a better dividend.
• 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.
• 34.85% of the earnings are spent on dividend by SU. This is a low number and sustainable payout ratio.
• SU's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Exploring NYSE:SU's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:SU scores a 7 out of 10:

• With a decent Altman-Z score value of 2.23, SU is doing good in the industry, outperforming 65.53% of the companies in the same industry.
• SU has a debt to FCF ratio of 1.72. This is a very positive value and a sign of high solvency as it would only need 1.72 years to pay back of all of its debts.
• The Debt to FCF ratio of SU (1.72) is better than 80.58% of its industry peers.
• A Debt/Equity ratio of 0.32 indicates that SU is not too dependend on debt financing.
• SU has a better Current ratio (1.59) than 64.56% of its industry peers.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:SU scores a 5 out of 10:

• With a decent Return On Assets value of 8.84%, SU is doing good in the industry, outperforming 72.33% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 17.79%, SU is in the better half of the industry, outperforming 68.45% of the companies in the same industry.
• SU's Profit Margin has improved in the last couple of years.
• SU has a better Gross Margin (61.96%) than 68.45% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Disclaimer

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.