Insights into Suncor Energy Inc's Upcoming and Historical Dividend Performance
Suncor Energy Inc (SU, Financial) recently announced a dividend of $0.55 per share, payable on 2023-12-22, with the ex-dividend date set for 2023-11-30. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Suncor Energy Inc's dividend performance and assess its sustainability.
What Does Suncor Energy Inc Do?
Suncor Energy Inc is an integrated energy company. The company's operations include oil sands development, production and upgrading, offshore oil and gas, petroleum refining in Canada and the U.S., and the company's Petro-Canada retail and wholesale distribution networks. Suncor Energy Inc is developing petroleum resources while advancing the transition to a low-emissions future through investment in power, renewable fuels, and hydrogen. It also conducts energy trading activities focused principally on the marketing and trading of crude oil, natural gas, byproducts, refined products, and power.
A Glimpse at Suncor Energy Inc's Dividend History
Suncor Energy Inc has maintained a consistent dividend payment record since 1994. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Suncor Energy Inc's Dividend Yield and Growth
As of today, Suncor Energy Inc currently has a 12-month trailing dividend yield of 4.62% and a 12-month forward dividend yield of 4.73%. This suggests an expectation of an increase in dividend payments over the next 12 months.
Over the past three years, Suncor Energy Inc's annual dividend growth rate was 3.80%. Extended to a five-year horizon, this rate decreased to 1.60% per year. And over the past decade, Suncor Energy Inc's annual dividends per share growth rate stands at 8.80%.
Based on Suncor Energy Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Suncor Energy Inc stock as of today is approximately 5.00%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Suncor Energy Inc's dividend payout ratio is 0.34.
Suncor Energy Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Suncor Energy Inc's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 8 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Suncor Energy Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Suncor Energy Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Suncor Energy Inc's revenue has increased by approximately 21.00% per year on average, a rate that outperforms approximately 71.26% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Suncor Energy Inc's earnings increased by approximately 77.10% per year on average, a rate that outperforms approximately 86.37% of global competitors.
Concluding Thoughts on Suncor Energy Inc's Dividend Profile
In conclusion, Suncor Energy Inc's upcoming dividend payment reflects the company's commitment to returning value to shareholders. The historical dividend growth and the reasonable payout ratio suggest that Suncor Energy Inc is managing its dividend policy effectively. Coupled with a solid profitability rank and promising growth metrics, the future prospects for Suncor Energy Inc's dividend payments appear favorable. Investors seeking to diversify their portfolios with a stock that offers both growth potential and a steady dividend income might find Suncor Energy Inc an attractive option.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
