On the subject of investments, there’s not significantly better than constant, low-risk, annual money flows. Positive, it’s good to look at shares go up, however due to market volatility, they usually go down as nicely. What’s actually comforting is getting a excessive dividend return.

Sometimes, I’ve written articles about dividend shares I personal that paid me a variety of annual money move. The inventory I’ve posted on most frequently in these articles has been TD Financial institution (TSX:TD). I purchased some TD inventory final yr very cheaply, after dumping my earlier shareholdings early within the yr. The value I received was about $75. TD was yielding about 5.5% on the time.

This yr, TD has gone on a large rally, leading to its yield shrinking to beneath 4%. It’s not likely a high-yielder anymore. Accordingly, I’ll share a special dividend inventory on this article, one which I consider hasn’t actually began shifting but. I’m getting a 4.1% annual dividend yield from this inventory, and I anticipate the yield to regularly improve with time.

Suncor Vitality

Suncor Vitality Inc (TSX:SU) is a Canadian built-in power firm. It’s concerned in oil exploration and manufacturing; refining; pure gasoline advertising; and gasoline stations. The corporate’s gasoline station chain, Petro-Canada, is without doubt one of the largest in Canada.

One among Suncor’s largest virtues as an built-in power firm is the truth that it will possibly earn a living in several oil & gasoline market circumstances. As an E&P, it will possibly make good cash when oil costs are excessive. As a refiner, it will possibly earn a living when there’s a vast oil-gasoline worth unfold (“crack unfold”), even when oil costs aren’t excessive in an absolute sense. This makes Suncor a reasonably secure and reliable power firm.

Dividend potential

Suncor Vitality pays a $0.57 quarterly dividend, or $2.28 per yr. At at present’s inventory worth ($55.31) that gives a 4.1% yield. In case you make investments $50,000 in Suncor inventory, you’ll get $2061.12 in annual passive earnings, assuming the dividend doesn’t change. See the mathematics beneath.

Current earnings

To gauge how Suncor has been doing as a enterprise these days, we will take a look at its most up-to-date quarterly earnings launch.

In its most up-to-date quarter, Suncor Vitality delivered:

• $12 billion in income, down 9.8%.
• $1.1 million in internet earnings, down 27%
• $873 million in working earnings, down 46%.
• $2.9 billion in working earnings, down 23.5%.

As you’ll be able to see, it was a reasonably weak quarter for Suncor. Nonetheless, it’s essential to notice two issues: first, oil costs have been fairly low final quarter and Suncor ought to fare higher in future durations when oil costs are larger. Secondly, Suncor is reasonable given the earnings ranges proven above.

Valuation

At at present’s costs, Suncor inventory is pretty low-cost, buying and selling at:

• 11.5 instances earnings.
• 1.4 instances gross sales.
• 1.5 instances e book.
• 4.7 instances money move.

As you’ll be able to see, the inventory is kind of low-cost, so even with the latest decline in earnings, it stays an honest worth. Personally, I’m comfortable proudly owning Suncor inventory.