Living Off Dividends in Retirement: 5 Best Stocks To Consider

3. Suncor Energy Inc. (NYSE:SU)

Dividend Yield as of May 13: 3.98%

Number of Hedge Fund Holders: 33

Suncor Energy Inc. (NYSE:SU) is a Canadian energy company that operates via Oil Sands, Exploration and Production, Refining and Marketing, and Corporate and Eliminations segments. Suncor Energy Inc. (NYSE:SU)’s dividend yield on May 13 came in at 3.98%. 

On May 10, Suncor Energy Inc. (NYSE:SU) declared a C$0.47 per share quarterly dividend, an 11.9% increase from its earlier dividend of C$0.42. The dividend is payable on June 24, to shareholders of record on June 3. The company authorized an extension to the normal course issuer bid program to raise the maximum number of common shares. Suncor Energy Inc. (NYSE:SU) may repurchase up to approximately 10% of the public float as of January 31, 2022. 

Suncor Energy Inc. (NYSE:SU) reported its financial results for the first fiscal quarter of 2022 on May 9. The company announced earnings per share of $1.48, beating market consensus estimates by $0.17. The revenue grew 47.54% year-over-year to $10.38 billion, topping analysts’ estimates by $1.59 billion. 

BMO Capital analyst Randy Ollenberger on May 11 reiterated an Outperform rating on Suncor Energy Inc. (NYSE:SU) and raised the firm’s price target on the shares to C$54 from C$48.

According to Insider Monkey’s Q4 data, 33 hedge funds were bullish on Suncor Energy Inc. (NYSE:SU), up from 32 funds in the last quarter. In Q1 2022, Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital disclosed a notable stake in Suncor Energy Inc. (NYSE:SU), comprising 16.8 million shares worth over $548 million. 

Here is what ClearBridge Investments International Growth ADR Strategy has to say about Suncor Energy Inc. (NYSE:SU) in its Q1 2022 investor letter: 

“Also within the structural bucket, we added to our commodity exposure with the purchase of Suncor Energy (NYSE:SU). Suncor, a past holding, is a Canadian integrated oil company where we capitalized on attractive valuation due to a COVID-19-induced slowdown. We expect recovery in oil demand and strong pricing will result in faster than expected free cash flow growth and financial deleveraging.

The structural bucket has the shortest investment horizon across the spectrum of growth companies we target in the Strategy. We closely monitor the macro impacts and turnaround progress of these companies and will be disciplined sellers when the thesis for a holding plays out.”