Suncor Energy Inc T.SU

The seesaw battle

[Obscure1]

I have been watching the conversation seesaw back and forth about dividends versus debt reduction versus share buybacks. 

Those that have a need for dividend income clearly can't get their head around anything except the dividend.  That's ok.  It is a poor investement decision for those looking at the big picture, but who is to say what is right or wrong for someone else. 

When the company has stated that they are going to prioritize debt repayment and share buybacks, it would be incredibly foolish to believe anything else is going to happen. 

It is always a possibility that the company buys back all the shares that it can, and pays down all the debt that it can and still has enough cash left over to pay increase the dividend ahead of schedule.  If that is the case, the best place to go for information would be to the company itself.

If your priority is a dividend income, get out of SU right now.  Put your money into a a pipeline or a financial stock or another investment that means your objectives. 

One of our thoughtful posters correctly wrote about how we are faced with a buy or hold or sell decision every day.  Unless someone likes to complain simply because they are miserable, holding a stock when you hate the company makes zero sense. Holding a stock in a company wishing for a dividend increase when the company has clearly offered guidance that there wouldn't be a dividend increase makes zero sense.  Believing that one can complain or write a post on Stockhouse and expect the complaint to have any impact makes zero sense.

I'm trying to wrap my head around why anyone would hold a stock and then complain endlessly about it.  There are thousands of investments to choose from, so why would anyone cling to something that makes them unhappy. 

Maybe people that post here think their efforts can actually make a difference in how the company is going to be run or what actions it will take.  Maybe they think that their posts can actually make a difference in the share price.  It is NEVER going to happen.  Deal with it.

These forums can be useful if they offer up information or insignt that you might have missed on your own.  Otherwise, spending any time here is a complete waste of time.

[Oldnagger]

I very much beg to differ, one idea properly presented can make a difference. may I be ever so bold as to say that I have proved that to myself and to many more. The more ideas the better .,Each one can carry a grain of wisdom that can move many. These forums properly used (i.e no ad hominems ) are very valuable. Any real leader in any endeavour would do very well to listen. Issues today are for

[Oldnagger]

A few examples of what I am talking about. Crew bull board participants regularly get managements attention. They have incorporated ideas mentioned on the BB to correct their presentation and to answer concerns raised on the BB. Ditto PIPE who clarified issues concerning their warrants. One of the best is Peyto. The president writes a newsletter each month often addressing issues that arise on the

[Experienced]

I agree. Not saying that the companies will do what people here suggest, but one of the jobs of IR is to gauge the sentiment of investors and to communicate with them to enhance the company's image. The forum on Stockhouse provides one way for the IR division of companies to achieve these objectives.

[liljohnnyjoke]

Most people aren't here for the divy alone , they want share price appreciation. And that always follows on the heels of divy increases. Almost never on share buybacks. Ok fine to pay off some debt. Management is focused on debt repayment and share buybacks, which will lead to bigger year end bonuses. And rapid share price depreciation that now hits this stock virtually every day. 2 quarters

[angelnicky]

BP strategy is working, they announced that  they are increasing div 4 percent per quarter to 2025 and also buying back shares as long as oil is around 60 dollars a barrel CEO suncor strategy is not working, management must wake up, and not take pay increases or bonsus on the shareholders back Shame on CEO and Board We need a quick change as strategy is not working

[Oldnagger]

The whole oil industry is in a difficult place. Particularly the majors. BP saw the writing on the wall after their Gulf Coast disaster. Share prices increases have been stunted for most companies way below the increase in commodity prices an yet cash flows are rising dramatically. Renewables etc are very capex intensive and low return investments. The Industry knows this and so does the market

[Experienced]

Generally agree with you. Where we might differ is as follows.. In the case of SU, the oil reserves associated with the base plant are expected to run out in 15-20 years.  They have begun the process to get approval to extend the mining area.  In the current political climate it is not a certainty that they will get approval.  As time goes on, the prospects of approval IMO will

[Experienced]

Why don't we deal with actual facts? YTD (excluding dividends) BP.....+15.6% SU....+14.8% Last time I checked my math book that is not much difference. Both are underperforming the TSX at 18.6%.  Which in my books is a big difference.  So this begs the question....should you be invested in oil at all as opposed to an index fund or some other sector such as the banks which have

[Vlosun]

Its false, management Will increase dividend 25% per years. not 3 or 6%, 25%!. Just be patient, relax. They want to increase, but not now. They Will secure the dividend with the buyback and debt repayment.