Suncor Energy Inc. (NYSE:SU) Declares Dividend Increase - C$0.66 Per Share

Key Points

• Suncor raised its quarterly dividend 10% to C$0.66 per share, payable December 24 to shareholders of record December 3. The announced rate annualizes to C$2.64 per share, a stated yield of 3.5%.
• The article says the dividend is covered by earnings, citing a 57.9% payout ratio; analysts expect next-year EPS of $7.28.
• Suncor reported quarterly EPS of $2.33, above the $2.14 consensus, and revenue of $13.41 billion, also higher than estimates of $11.68 billion.

Suncor Energy Inc. (NYSE:SU - Get Free Report) TSE: SU announced a quarterly dividend on Tuesday, November 3rd. Stockholders of record on Thursday, December 3rd will be given a dividend of C$0.66 per share by the oil and gas producer on Thursday, December 24th. This represents a $2.64 annualized dividend and a dividend yield of 3.5%. The ex-dividend date is Thursday, December 3rd. This is a 10.0% increase from Suncor Energy's previous quarterly dividend of C$0.60.

Suncor Energy has raised its dividend payment by an average of 0.2% annually over the last three years and has raised its dividend every year for the last 4 years. Suncor Energy has a payout ratio of 57.9% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Suncor Energy to earn $7.28 per share next year, which means the company should continue to be able to cover its $1.73 annual dividend with an expected future payout ratio of 23.8%.

Suncor Energy Price Performance

Shares of Suncor Energy stock opened at $75.30 on Wednesday. Suncor Energy has a one year low of $38.72 and a one year high of $80.25. The stock's fifty day moving average is $71.36 and its 200 day moving average is $63.54. The stock has a market cap of $88.07 billion, a P/E ratio of 13.47, a P/E/G ratio of 0.26 and a beta of 0.22. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.08 and a current ratio of 1.65.

Suncor Energy (NYSE:SU - Get Free Report) TSE: SU last released its quarterly earnings results on Tuesday, August 4th. The oil and gas producer reported $2.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.14 by $0.19. The business had revenue of $13.41 billion during the quarter, compared to analyst estimates of $11.68 billion. Suncor Energy had a return on equity of 20.05% and a net margin of 15.62%. During the same quarter in the previous year, the company posted $0.71 earnings per share. Sell-side analysts anticipate that Suncor Energy will post 8.76 earnings per share for the current year.

Institutional Trading of Suncor Energy

Institutional investors have recently made changes to their positions in the business. Livelsberger Financial Advisory bought a new position in Suncor Energy during the 3rd quarter worth about $25,000. Versant Capital Management Inc raised its holdings in shares of Suncor Energy by 418.9% in the 2nd quarter. Versant Capital Management Inc now owns 493 shares of the oil and gas producer's stock valued at $26,000 after purchasing an additional 398 shares in the last quarter. Continuum Advisory LLC bought a new stake in shares of Suncor Energy in the 2nd quarter valued at about $27,000. Sawyer & Company Inc purchased a new stake in shares of Suncor Energy in the 3rd quarter worth approximately $44,000. Finally, Cassaday & Co Wealth Management LLC purchased a new stake in shares of Suncor Energy in the 1st quarter worth approximately $53,000. Hedge funds and other institutional investors own 67.37% of the company's stock.

Suncor Energy Company Profile

Suncor Energy Inc is an integrated energy company headquartered in Calgary, Alberta, Canada. Its operations span the energy value chain, including the development, production, upgrading, refining, and marketing of crude oil and petroleum products.

The company is one of Canada's major oil sands producers, with interests in mining and in situ oil sands projects. Suncor produces bitumen and synthetic crude oil and also has conventional oil and offshore production interests. Its upstream portfolio includes operated and non-operated assets in Canada.

Through its downstream operations, Suncor refines crude oil into gasoline, diesel, jet fuel, asphalt, and other petroleum products.

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