Suncor Energy Inc T.SU

Dividend

[bullbird]

It is surprising what a dividend can do to determine the value of a stock rather than share buy back or profit, especially when you pay more income tax on dividends. Any ideas?

[prophetoffacts]

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[bullbird]

Apperently the CEO of Suncor thinks it the right way to go.

[prophetoffacts]

This post has been removed in accordance with Community Policy

[Experienced]

Here is my take If you look at the financials when SU was trading in the 50s compared to now, there is no question that the company is stronger today than back then.  For these reasons the SP of SU is cheap and this is what mgt is looking at in terms of their decision to to do the buyouts. So the question then becomes - Why is the market punishing SU? The answer to this question has a

[Oldnagger]

If Suncor wants to skate to where the puck is going, then that direction is towards natural gas . The price of nat gas is now equal or greater than Crude oil in most of the world outside North America. If the Americans were to stop their BS and actually do something significant to shut down coal (i.e a carbon tax ), then the price of nat gas in North America will also rise much closer to crude

[Co2Harvest]

On their website, they say that their mission is to transform their GHG footprint by growing their low GHG fuels and optimizing the footprint of their expositing business. While natural gas is an obvious pathway, it isn't the only one and as an investor I won't solve their problem for them. Instead, I will hold Suncor to their mission statement.

[Oldnagger]

Thanks for your comments, the Suncor I once knew didn't give a hoot about sticking to their mission statement. That is why they went from being one of the smallest players to one of the largest players. Personally speaking,  my forte in life has always been about blowing up mission statements. Creativity and the willingness to change directions as necessary is the hallmark of success IMHO

[PabloLafortune]

If Suncor buys back 7% of their shares annually for the next 30 years ( use 40 or 50 years if you want), the share count will be down to 170M shares (although with employee shares it maybe higher). But between declining production (we know what happens to oil sands costs when volume goes down), remaining debt and abandonment liabilities, the company may actually be worthless. Shareholders will

[Speedy]

It's one thing to buy back shares and hold them to eventually disperse to management or hold for future, which inevitably the shares end up sold back into the public market without reducing the share count, in my opinion this is useless and self serving.  It's another to buyback shares and dissolve them which increases the value of the stock.  Im not sure what path suncor

[Co2Harvest]

I don't view moving to natural gas as being all that creative, though. It may be a key part of the solution but I'd like to see how else Suncor plans to achieve it's GHG reduction goals while growing its business and then base my future investing decisions upon that.

[Oldnagger]

The creative part would be in areas such as ammonia manufacture from nat gas where the byproduct CO2 is separated then sequestered . This ia a processing operation for which Suncor has both the necessary skill  sets and access to investment capital. The smaller gas producers lack these The Japanese have developed technology for burning ammonia to produce power at their end. What is neede is