Suncor Energy Inc. (NYSE:SU) Announces Dividend Increase - $0.41 Per Share

Key Points

• Suncor Energy Inc. announced a quarterly dividend increase to $0.4135 per share, representing a 0.1% rise from the previous dividend, and a yield of 4.2%.
• The company has a payout ratio of 55.5%, indicating its dividend is supported by earnings, with expected earnings of $3.68 per share next year covering the annual dividend.
• Suncor Energy's shares are trading at approximately $39.23 with an average target price of $66.00, despite a recent downgrade from "buy" to "hold" by some analysts.

Suncor Energy Inc. (NYSE:SU - Get Free Report) TSE: SU announced a quarterly dividend on Wednesday, August 6th, Wall Street Journal reports. Investors of record on Thursday, September 4th will be given a dividend of 0.4135 per share by the oil and gas producer on Thursday, September 25th. This represents a c) dividend on an annualized basis and a yield of 4.2%. The ex-dividend date of this dividend is Thursday, September 4th. This is a 0.1% increase from Suncor Energy's previous quarterly dividend of $0.41.

Suncor Energy has a payout ratio of 55.5% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Suncor Energy to earn $3.68 per share next year, which means the company should continue to be able to cover its $1.66 annual dividend with an expected future payout ratio of 45.1%.

Suncor Energy Stock Performance

Shares of SU traded down $0.02 during midday trading on Wednesday, reaching $39.23. 4,643,453 shares of the stock were exchanged, compared to its average volume of 4,784,020. The stock's 50 day simple moving average is $38.62 and its 200 day simple moving average is $37.37. The company has a market cap of $47.77 billion, a P/E ratio of 11.30, a PEG ratio of 3.44 and a beta of 0.84. Suncor Energy has a twelve month low of $30.79 and a twelve month high of $41.94. The company has a quick ratio of 0.84, a current ratio of 1.39 and a debt-to-equity ratio of 0.21.

Suncor Energy (NYSE:SU - Get Free Report) TSE: SU last issued its quarterly earnings results on Tuesday, August 5th. The oil and gas producer reported $0.51 EPS for the quarter, beating analysts' consensus estimates of $0.50 by $0.01. Suncor Energy had a net margin of 11.95% and a return on equity of 14.90%. The business had revenue of $8.81 billion for the quarter, compared to analysts' expectations of $11.56 billion. During the same quarter in the prior year, the firm posted $1.27 earnings per share. On average, sell-side analysts expect that Suncor Energy will post 3.42 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen cut shares of Suncor Energy from a "buy" rating to a "hold" rating in a research report on Thursday, April 17th. Four analysts have rated the stock with a hold rating, five have given a buy rating and two have assigned a strong buy rating to the company's stock. According to MarketBeat.com, Suncor Energy currently has an average rating of "Moderate Buy" and an average target price of $66.00.

About Suncor Energy

Suncor Energy Inc operates as an integrated energy company in Canada, the United States, and internationally. It operates through Oil Sands; Exploration and Production; and Refining and Marketing segments. The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products.

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