Suncor Energy Inc T.SU

Debt repayment versus dividend increases

[Farmer12]

If you measure the value of a company by the % of dividend they pay, you would eliminate most of the best companies in the world. Lots of companies pay a higher dividend if that is what you want. A lot of oil companies that paid a big dividend are now bankrupt, disappeared into the mist. Share buybacks and debt reduction are actually increasing the underlying value of the remaining share count, even though not evident currently. Big ocean, lots of fish.

[Chris007]

Generally speaking, companies with rapid growth prospects will not pay a dividend, or pay a very modest one, as free cash flow can be best deployed else to grow the business. If anything, O&G is a sector that is perceived to be in decline (rightly or wrongly is highly debatable). Hence, it would make much more sense to return free cash flow to investors, directly , rather than reinvesting it

[BlackDay1]

It's sad that you even need to expalin this on a stock board -