Only 3 Days Left To Cash In On Suncor Energy Inc (TSE:SU) Dividend, Should You Buy?

If you are interested in cashing in on Suncor Energy Inc’s (TSX:SU) upcoming dividend of CA$0.36 per share, you only have 3 days left to buy the shares before its ex-dividend date, 01 June 2018, in time for dividends payable on the 25 June 2018. Is this future income a persuasive enough catalyst for investors to think about Suncor Energy as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. Check out our latest analysis for Suncor Energy

Here’s how I find good dividend stocks

When researching a dividend stock, I always follow the following screening criteria:

• Is it the top 25% annual dividend yield payer?

• Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?

• Has the amount of dividend per share grown over the past?

• Is its earnings sufficient to payout dividend at the current rate?

• Will the company be able to keep paying dividend based on the future earnings growth?

TSX:SU Historical Dividend Yield May 28th 18

How does Suncor Energy fare?

The current trailing twelve-month payout ratio for the stock is 56.04%, which means that the dividend is covered by earnings. Furthermore, analysts are forecasting the payout ratio to exceed earnings going forward, leading to a future of uncertainty around the stability of SU’s dividend income. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. SU has increased its DPS from CA$0.2 to CA$1.44 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock. Relative to peers, Suncor Energy generates a yield of 2.84%, which is on the low-side for Oil and Gas stocks.

Next Steps:

With these dividend metrics in mind, I definitely rank Suncor Energy as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three relevant factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for SU’s future growth? Take a look at our free research report of analyst consensus for SU’s outlook.

2. Valuation: What is SU worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether SU is currently mispriced by the market.

3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.