Dividend Cut/Suspension #6 of 2020

suncor-energy

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?

Thanks

Matthew

8 thoughts on “Dividend Cut/Suspension #6 of 2020

  1. I recently bought Suncor for $15.60 per share, expecting a dividend cut. It will be raised back up once oil is above $60. We are heading this direction this summer. Most people will travel by cars doing cross-countries for summer vacation.

    Liked by 1 person

  2. Matthew, when I see your “ cut/suspension” headline, I’m scared to look because we hold similar stocks. I have 110 shares in Suncor. I’m not worried though😂

    Liked by 1 person

  3. Suncor wasn’t one of them I owned but I started selling my energy stocks between 2013 and 2015 when I was seeing them crumble. I’ve kept the pipelines in the portfolio and added to them, but had no desire to get into the other energy stocks again. Not perfect either since I received a dividend cut with IPL.

    Sorry to hear about your income cut Matthew.

    Liked by 1 person

    1. Thanks Graham Suncor is going to be the only produced I will hold in my portfolio. Pipelines are probably better to hold. I’m sure IPL will raise their dividend again once they get the Heartland project built.

      Like

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