Suncor Energy (TSX:SU)(NYSE:SU) reported strong earnings numbers last week, as it continues to solidify its position as an attractive dividend stock, supported by strong operational performance and a commitment to returning capital to shareholders. With a 4.1% dividend yield and consistent share buybacks, the company offers compelling income potential for investors.
For the fourth quarter of 2024, Suncor reported adjusted funds from operations of $3.5, enabling it to return $1.7 billion to shareholders—$700 million in dividends and $1 billion in share repurchases. For the full year, Suncor distributed $5.7 billion in shareholder returns, including $2.8 billion in dividends. The company also raised its quarterly dividend by 5% to $0.57 per share, reflecting confidence in its financial strength.
With $7.4 billion in free funds flow for 2024 and a commitment to returning excess cash to investors, Suncor remains a reliable income stock.
Additionally, it reduced net debt to $6.9 billion from $9.9 billion in the prior year, improving financial flexibility.
Suncor achieved record upstream production of 875,000 barrels per day in Q4. Refining throughput also remained near record levels at 486,200 barrels per day, with refinery utilization reaching 104%. Strong operational efficiency contributed to steady cash flow, helping sustain its dividend and buyback programs.
Suncor’s solid dividend yield, consistent buybacks, and a disciplined approach to capital allocation make it a top income-generating stock to own for years. Investors seeking stable dividends and long-term cash flow growth may find it an attractive addition to their portfolios. Over the past five years, the stock has risen by more than 40%.
