RE:RE:Why I like Suncor
Tommy, not sure I fully agree with Dividends being a waste of time. In my opinion, you need to keep pace with the market and the market is moving to higher dividend rates. Without keeping pace this company will trade at a discount.
As you are likely aware, substantial funds have shifted from interest bearing products like GIC's and High Yield savings to equities as people are chasing returns that deliver a rate of return higher than inflation. In this regard, it stands to reason good dividend paying stocks will attract more investors which in turn should drive share appreciation. This tide will shift once we see interest rates move up but that could be a while given everything happening today.
In thinking about what you are saying, I do agree taking cash out of company in the form of dividends only serves the interest of shareholders and does nothing to create long term value to the company. It is,however, a necessary beast and I for one have preference to investing in companies that pay a dividend but I really like a balanced approach of strengthening the balance sheet, sharebuybacks and investing in new opportunities.