Good morning everyone! I wish I was writing about something positive today, however I’m here to report another dividend cut to my portfolio. Tuesday night May 5th Suncor reported their quarterly earnings and the news as expected wasn’t great. Suncor announced a 55% cut to their quarterly dividend effective immediately. At the time of writing crude oil is currently trading for $23.49 per barrel, that price is unsustainable for oil producers. Suncor said in their release that they need oil to trade for $35 to break even.
I currently own 66 shares of the company and with this news my forward income will drop by $16.83 a quarter or $67.32 annually.
My plan for Suncor is to hold and see what happens. If the stock drops below $20 I may buy for shares. Although it is tough as an investor to see a cut like this I think it was a smart decision by management.
Do you own Suncor? If so what do you plan on doing with this news?