Canada remains heavily dependent on the oil and gas sector. The COVID-19 pandemic has pushed up prices in this area and increased demand. These problems were exacerbated by ongoing conflicts within OPEC. Fortunately, oil and gas prices continue to gain momentum in early 2021. This is good news for Canada’s energy giants. Today I would like to compare and contrast the two heavy weights. Suncor Energy (TSX: SU)(NYSE: SU) And Embridge (TSX: ENB)(NYSE: ENB).. Which is better for now? Let’s dive in and find out.
For Suncor shares in early January
Suncor is a Calgary-based integrated energy company specializing in the production of synthetic crude oil from oil sands. At the closing price on January 5, 2020, its share increased by 8.3%. Stock prices are down 43% year-on-year. Investors can expect Suncor’s Q4 2020 and full-year results in early February. In the spring of 2020, Suncor was still receiving, so investors suggested that they should bet on Suncor. Voting of trust From Warren Buffett.
The company confirmed that operating capital increased from $ 488 million or $ 0.32 per share to $ 1.66 billion or $ 0.76 per share in the previous quarter. Total upstream production declined this quarter as Sanko tweaked its business in the face of a pandemic. Suncor is ready to further enhance its third quarter improvements for the fourth quarter.
Suncor shares finally have a favorable price-to-book value ratio of 0.9. Suncor previously reduced its quarterly dividend to $ 0.21 per share. This corresponds to a yield of 3.6%.
Why Embridge is still setting standards
Embridge is the second heavyweight energy stock I would like to focus on today. It is the largest energy infrastructure company in North America. In May, Canadian investors suggested that they should consider Scoop up the embridge At a discounted price. Its share has increased by 9.9% in the last three months as of the closing price on January 5.
Investors can expect Embridge’s Q4 2020 and full-year results by mid-February. Unlike Sanko, Embridge continues to make strong profits in the face of the COVID-19 pandemic. In the third quarter of 2020, Embridge reported growth in all its core businesses. Leadership expects the company to generate 5% to 7% DCF per share by 2022. This supports dividend payout ratio and liability requirements.
Embridge’s stock finally had a solid P / B value of 1.5. The stock finally paid a quarterly dividend of $ 0.835 per share. This is equivalent to a 7.9% yield of monsters. In addition, the company has achieved dividend growth for over 20 consecutive years.
Verdict: Do I need to buy Suncor or Enbridge today?
Suncor’s improvements in the third quarter of 2020 were encouraging, especially as oil and gas prices recovered in late 2020 and early 2021. But I’m sticking to today’s Enbridge Dividend Beast. Embridge stocks still have a solid value, have a good history and are stable, and offer a good payout ratio.
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Stupid contributor Ambrose O’Callahan There are no positions in any of the listed stocks. Motley Fool owns and recommends a stake in Enbridge.
Suncor (TSX: SU) and Enbridge (TSX: ENB): Which Energy Heavyweight Should You Buy Today?
https://www.fool.ca/2021/01/06/suncor-tsxsu-vs-enbridge-tsxenb-which-energy-heavyweight-should-you-buy-today/ Suncor (TSX: SU) and Enbridge (TSX: ENB): Which Energy Heavyweight Should You Buy Today?