Suncor Energy Inc. Announces Quarterly Dividend of C$0.60 (NYSE:SU)

Key Points

• Suncor Energy declared a quarterly dividend of C$0.60 per share, payable September 25 to shareholders of record on September 4. The payment implies an annualized dividend yield of approximately 3.7%.
• The dividend appears well covered, with a current payout ratio of 57.9% and an expected future payout ratio of 29.4%; Suncor has increased its dividend annually for four consecutive years.
• Suncor’s stock opened at $65.19, while institutional investors—including Arrowstreet Capital, AQR Capital Management and Ontario’s pension plan—recently increased their holdings. Institutional investors own 67.37% of the company.

Suncor Energy Inc. (NYSE:SU - Get Free Report) TSE: SU declared a quarterly dividend on Tuesday, August 4th. Shareholders of record on Friday, September 4th will be paid a dividend of 0.60 per share by the oil and gas producer on Friday, September 25th. This represents a c) annualized dividend and a yield of 3.7%. The ex-dividend date is Friday, September 4th.

Suncor Energy has raised its dividend payment by an average of 0.2%annually over the last three years and has increased its dividend every year for the last 4 years. Suncor Energy has a dividend payout ratio of 57.9% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Suncor Energy to earn $5.88 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 29.4%.

Suncor Energy Trading Up 1.1%

Suncor Energy stock opened at $65.19 on Wednesday. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.92 and a current ratio of 1.42. Suncor Energy has a fifty-two week low of $37.76 and a fifty-two week high of $70.29. The stock has a market cap of $76.97 billion, a P/E ratio of 17.11, a PEG ratio of 0.49 and a beta of 0.29. The firm's fifty day moving average price is $60.57 and its 200-day moving average price is $60.40.

Suncor Energy (NYSE:SU - Get Free Report) TSE: SU last released its quarterly earnings results on Tuesday, May 5th. The oil and gas producer reported $1.41 earnings per share for the quarter, missing the consensus estimate of $1.45 by ($0.04). Suncor Energy had a net margin of 12.29% and a return on equity of 13.96%. The business had revenue of $10.41 billion during the quarter, compared to analysts' expectations of $9.22 billion. During the same period in the previous year, the business earned $1.31 EPS. Equities research analysts forecast that Suncor Energy will post 7.11 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in SU. Arrowstreet Capital Limited Partnership lifted its stake in shares of Suncor Energy by 121.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 26,085,360 shares of the oil and gas producer's stock valued at $1,724,954,000 after acquiring an additional 14,304,131 shares during the last quarter. AQR Capital Management LLC grew its position in Suncor Energy by 7,636.8% during the 4th quarter. AQR Capital Management LLC now owns 6,016,483 shares of the oil and gas producer's stock worth $267,042,000 after acquiring an additional 5,938,719 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund increased its stake in Suncor Energy by 238.9% in the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 7,758,650 shares of the oil and gas producer's stock worth $512,987,000 after purchasing an additional 5,469,431 shares during the period. FIL Ltd increased its stake in Suncor Energy by 14.0% in the 4th quarter. FIL Ltd now owns 21,050,387 shares of the oil and gas producer's stock worth $934,312,000 after purchasing an additional 2,592,516 shares during the period. Finally, Alberta Investment Management Corp bought a new stake in Suncor Energy in the fourth quarter valued at approximately $93,960,000. 67.37% of the stock is owned by hedge funds and other institutional investors.

About Suncor Energy

Suncor Energy Inc is a Canadian integrated energy company headquartered in Calgary, Alberta. The company's operations span the full oil and gas value chain, with principal activities in oil sands development and production, conventional exploration and production, refining, distribution and retail marketing of petroleum products. Suncor supplies crude, synthetic crude and refined fuels as well as related products and services to commercial and consumer markets.

Upstream, Suncor is a major developer and operator of oil sands projects in Alberta, using both mining and in situ technologies to produce bitumen and synthetic crude.

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