Image Source: DepositPhotosSuncor Energy Inc (SU) is an integrated energy company.The company’s 4 operations include (1) oil sands development, production and upgrading, (2) offshore oil and gas, (3) petroleum refining in Canada and the U.S., and (4) the company’s Petro-Canada retail and wholesale distribution networks.The company 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.The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997.Suncor Energy Inc. was founded in 1917 and is headquartered in Calgary, Canada.Three key data points gaugeSuncor or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three basic keys best tell whether any company has made, is making, and will make money. SU PriceOver the past year, Suncor share price increased about 33% from $29.82 to $33.69 as of Thursday’s market close.If Suncor trades in the range of $25.00 to $45.00 this next year, its recent $33.69 share price might rise to $40.00 by next year. Of course, Suncor’s price could drop about the same $6.31 estimated amount, or more.My annual upside estimate of $6.31 however, is about $1.67 under the median of one year price targets from 4 analysts covering SU for brokers
SU Dividend
Suncor has paid variable Quarterly dividends since March, 1994. Suncor’s most recent Q dividend of $0.40 was declared November 14, 2023 to shareholders of record November 30th. The payout was made December 22..The forward looking $1.60 annual dividend yields 4.76% at Thursday’s $33.59 share price. SU ReturnsTo put it all together, add the estimated annual dividend of $1.60 to the price upside of $6.31 to find a $7.91 gross gain.At Thursday’s $33.69 share price, a little over $1000 would buy 30 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us a little over $0.33 per share.Subtracting that likely $0.33 brokerage cost from the $7.91 gross gain produces a net gain of $7.58 X 30 shares = $227.40 for a 22.5% estimated net gain.You might choose to pounce on SU. It is an 107 year-old Canadian, Integrated Energy outfit. Furthermore, the estimated $47.60 of dividend income from $1k invested is near 1.4 times greater than SU’s recent $33.69 single share price.The exact track of the Suncor Energy Inc ongoing future price and dividend is yet to be known.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Analysis: Petrobras
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