#2 - Suncor Energy (NYSE:SU)
Suncor Energy (NYSE: SU) - Another company that makes this list because of their ability to generate large amounts of cash is Suncor Energy. Despite being part of the energy sector which has been banged around over the last two years, Suncor has managed to keep their quarterly dividend virtually the same. They currently offer a very attractive dividend yield of around 4.4%. Another factor in the popularity of their stock is their recent focus on share buybacks. In 2017, they bought back $1.6 billion in shares and did the same in 2018. This has helped drive their stock performance and has made SU one of the more attractive oil stocks. Benjamin Halliburton, chief investment officer at Tradition Capital Management had this to say about the future growth of Suncor which he calls a low-cost oil sands operation, “We believe SU can grow 7 to 9 percent compound annual growth rate indefinitely given its resource base.” Like AT&T, the stock itself has been a victim of volatility, and indeed SU does carry a beta of over 1. However, as a dividend stock, the high dividend yield should be more than enough to offset a stock that has been unable to sustain the lifts it has received from its buybacks.
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.
Read More - Current Price
- $39.44
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 5 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $52.00 (31.8% Upside)
