Suncor announced after the markets closed on Wednesday that it would double its quarterly dividend to 42 cents per share, bringing the payout back up to pre-pandemic levels.
Is Suncor going to increase dividend?
As it continues to pay down debt and ramp up output in the wake of rising oil prices, Suncor Energy Inc. is doubling its payout and restoring it to pre-pandemic levels.
On Thursday, shares of the Calgary-based oil producer and refiner rose $3.78, or 13.4%, to $32. Suncor reported a net profit of $877 million, or 59 cents per common share, in the third quarter of this year, compared to a net loss of $12 million, or one cent per share, in the third quarter of 2020.
Due to outstanding performance and higher-than-expected energy prices, the firm plans to enhance its dividend to 42 cents per share on December 24.
About Suncor Energy
A: We were the first to commercialize Canada’s Athabasca oil sands, one of the world’s greatest petroleum resource basins, in 1967. Suncor has evolved into a globally competitive, Canadian-based integrated energy corporation with a well-balanced portfolio of high-quality assets, a strong financial sheet, and tremendous growth potential since then.
Suncor’s operations include oil sands development and upgrading, conventional and offshore oil and gas production, petroleum refining, and product marketing under the PetroCanadaTM brand. Suncor is headquartered in Calgary, Alberta. Suncor is building a growing renewable energy portfolio while seeking to safely develop petroleum resources.
Suncor’s common shares (ticker symbol: SU) are traded on both the Toronto and New York stock exchanges.
Shareholder Information
A: To join our email list, please go to the Computershare website. Please sign up for our email alerts to remain informed about other Suncor news.
Q: Where can I get more information on Canadian Oil Sands Limited’s acquisition?
A: The acquisition is detailed in Canadian Oil Sands’ Management Proxy Circular dated February 19, 2016. The Management Proxy Circular is available on SEDAR’s website.
Dividend Information
A: Of course. Suncor provides a dividend to ordinary stockholders every quarter. Dividends are declared at the sole discretion of the Board of Directors.
Q: Is there a Dividend Reinvestment Plan (DRIP) and/or a Cash Purchase Plan at Suncor?
A: To leave a legacy The dividend payment(s) of PetroCanada shareholders who have not yet contacted Computershare to exchange their certificates will be held in trust (for up to six years) until the certificates are exchanged.
Visit Computershare’s website and click on the Frequently Asked Questions link for further information.
Should I invest in Suncor?
Suncor (TSX:SU) is one of the top stocks to consider whenever you’re looking to acquire a Canadian energy company (NYSE:SU).
It’s one of the most popular stocks among Canadians for a reason. It’s a big corporation with one of North America’s highest-quality energy stocks.
Investing in a stock like Suncor has a lot of advantages. It’s a stock with a lot greater long-term growth potential than its energy industry counterparts, as well as a lot more stability.
There’s a reason why Warren Buffett, one of the best investors of all time, held Suncor in the past – it was one of his few Canadian stock purchases.
However, given the firm’s poor performance over the last six months, you might be thinking if you should buy Suncor stock now.
How do dividends work in stocks?
Dividends are paid to shareholders as a way of rewarding their investment in the business. Some corporations are noted for paying large dividends, while others may pay none at all. Dividends are paid twice a year on average. A portion of the company’s profits is divided and distributed to shareholders based on the number of shares they possess.
Information for security holders outside Canada
Cash dividends given to shareholders in countries with which Canada has an income tax treaty are normally subject to a 15 percent Canadian non-resident withholding tax, however this varies by tax treaty.
Dividends issued to a corporation based in the United States that owns at least 10% of Imperial voting shares are subject to a 5% withholding tax.
Imperial Oil Limited is a qualifying foreign corporation for the purposes of the new reduced U.S. capital gains tax rates (15 percent for certain individuals and 5% for others), which apply to dividends paid by both domestic and international firms.
Gains from the sale of shares or debt instruments owned by non-residents not carrying on business in Canada are normally exempt from Canadian taxation, as long as the shareholder does not own 25% or more of the corporation’s issued shares in any given 60-month period.
Valuation day price
Imperial’s common shares were quoted at $3.50 a share on December 22, 1971, and $5.10 on February 22, 1994, for capital gains purposes. Both the 1998 and 2006 three-for-one share splits have been recalculated.
How do I make $500 a month in dividends?
Here’s a five-step approach to get you started on your path to building a monthly dividend portfolio. This will take some time to create unless you have a huge sum of money ready to invest. That’s OK.
Open a brokerage account for your dividend portfolio, if you don’t have one already
The initial step will be to open a brokerage account if you don’t already have one. Examine the brokerage company’s trading commission fees and minimum standards. Many prominent brokerage firms have decreased their trade commissions to zero in 2019.
The move to zero commissions per trade is beneficial to you because it allows you to expand your dividend portfolio with smaller purchases without incurring expenses.
Also, double-check any minimum account balances, as some companies impose a fee for having an account if the balance falls below a particular amount. Many organizations have dropped their balance minimums to $0, like they did in 2019, but always double-check.
You’ll need to determine whether you want to open a conventional brokerage account or a tax-deferred retirement account when you open your account and begin your approach. Consider speaking with your preferred tax professional to figure out what makes the most sense for your unique scenario.
Finally, make sure you understand how to make a direct deposit into your new account as well as how to make a transfer from your current checking account. Consistently adding to an investing portfolio of any size is crucial to its success. By removing a step from the process, automation makes it easier to achieve your objectives. Also, if your employer does not offer direct deposit, you can transfer funds from your bank account.
If you have money set aside to add to your portfolio, begin transferring it to your new account as soon as it is available. Then look at your budget to see how much you can put aside each month.
Determine how much you can save and invest each month
To earn $500 in dividends every month, you’ll need to invest about $200,000 in dividend equities. The exact amount will be determined by the dividend yields of the equities in your portfolio.
Examine your finances more closely and determine how much money you can set aside each month to expand your portfolio. Given the large sum of money you’ll need to reach your $500 monthly dividend objective, adding to your portfolio on a regular basis will help.
The amount of money you have available to invest each month will influence how long it takes you to attain your objective.
Set away what you can if your budget is currently tight. Begin with a tiny quantity so that you have something to work with.
Then, take a closer look at your budget to see if there are any areas where you can cut costs so you can put that money to better use.
Set a smaller, short-term dividend objective so you can see how far you’ve come toward your larger goal. Perhaps a target of $50 or $100 per month in dividends is something you can achieve this year. It’s a good starting point for constructing a larger monthly dividend portfolio in the future.
Set up direct deposit to your dividend portfolio account
To amend your paycheck instructions, get the direct deposit details for your brokerage account. Because you still need money in your regular checking account, your employer should allow you to split your income in several ways. Make sure you pay your expenses as well as invest in your future earnings!
You should be able to set up free account transfer instructions within your brokerage account if you’ve run out of paycheck instructions or your brokerage business doesn’t have clear direct deposit instructions. Make a note on your calendar to manually transfer the money you intend to invest each payday. If the first option isn’t available, there’s usually a backup plan in place.
Choose stocks that fit your dividend strategy
Stock picking is a very personal decision that necessitates extensive research about each firm in which you choose to invest. When putting together a dividend portfolio, there are a few considerations to keep in mind for each company:
- How long they’ve been paying a dividend and how often they’ve increased it.
The financial condition and earnings of the company can help you determine how safe future dividend payments will be. When deciding which stocks to buy, it’s crucial to do some research on the firm and read some feedback.
The company’s dividend history and payment rise trends can help you predict when it will pay out in the future. Stocks with rising dividends might also help you reach your dividend targets.
Finally, understanding the industries in which the companies you choose to invest are located allows you to build a well-balanced and diverse portfolio. Risk management entails avoiding putting all of your eggs in one basket. Diversifying your portfolio’s companies and industries helps spread the risk of future dividend earnings.
Another factor to consider is when the corporation pays its dividends. If you wish to earn dividends on a monthly basis, seek for companies that have set payout schedules. That isn’t to argue that a historical payout schedule should be used to determine whether you should purchase or sell a stock. It simply adds to the complexity of your decision-making process.
Create a watchlist of companies you think you’ll like to invest in so that when you have the funds, you can begin purchasing shares to increase your dividend income.
Buy shares of dividend stocks
Finally, start buying shares of stock in the firms you wish to focus on to meet your monthly dividend objective. When it’s time to make a purchase, you’ll have cash on hand thanks to direct deposit from each paycheck.
When buying stocks, double-check your watchlist to discover which stock is currently the best deal. It’s not so much about “timing the market,” which rarely works out in your favor, as it is about making sure your purchases are as efficient as possible.
Fortunately, most large brokerage firms have decreased their trade commissions to zero, allowing you to buy stock in smaller quantities without incurring fees that reduce the value of your investment.
You can avoid research overwhelm and decision weariness by checking your watchlist. Whether you’re buying bluechip stocks, you’ll want to check the calendar to see if you’ll be eligible for the next dividend payment, or if the price is low enough, you could be able to get more shares for your money.
Is dividend better than salary?
Dividends are a portion of a company’s profits distributed to shareholders as a return on their investment. To pay dividends, unlike paying salary, the company must make a profit (after taxes). Because investment income is not subject to national insurance, it is frequently a more tax-efficient way to take money from your business than collecting a salary.
Dividends are tax-free for the first £2,000 every year, after which they are taxed at either 7.5 percent or 32.5 percent (2020/21) depending on your other income. Dividends can only be paid to shareholders as a compensation for taking on the risk of investing. Dividends are not paid to directors who are not stockholders.
How long do you have to own a stock to get the dividend?
To put it another way, you just need to own a stock for two business days to receive a dividend. Technically, you could acquire a stock with one second remaining before the market closes and still be eligible for the dividend two business days later. Purchasing a stock just for the sake of receiving a dividend, on the other hand, can be pricey. To fully comprehend the process, you must first comprehend the words ex-dividend date, record date, and payout date.
Is Suncor a good company?
High risk, high reward strategy. Suncor is a fantastic corporation that pays its employees with total remuneration that is far more than that of its competitors. Of course, this is accompanied by concerns about job security and workplace politics.
