Searching for best dividend yieldsHaving narrowed it down to just 2 stocks, here is the comparison.
CJ - Annual dividend yield 10.57% with payout ratio of 112%
Shares outstanding 159 million
SGY - Annual dividend yield 8.52% with payout ratio of 28.70%
Shares outstanding 101 million
CJ is using debt to pay part of the dividend until at least the 4th quarter of 2025 when the Redford SAGD project comes on line.
In summary CJ has the highest dividend yield but probably very little SP appreciation until 2026 when both SAGD projects will be on line. They are unable to do any buyback or debt reduction with the dividend and capital investment obligations this year.
SGY dividend looks very secure and they are actively buying back shares and paying down a bit of debt.
I have invested in SGY for the dividend and SP appreciation potential.
If CJ Share price drops below 6.47 will also jump into CJ but will be ready to jump out if the dividend looks threatened.
Just my take,
GLTA