Suncor Energy (NYSE: SU) has treated its investors well over the years. For example, it has delivered 15 consecutive annual dividend increases, which have helped fuel a total return of greater than 400% over that timeframe, more than doubling the total return of the S&P 500. That history of outperformance has earned it my admiration, though as much as I like what Suncor has done for investors in the past, I'm even more excited about what it has in store for them in the future. Here are four things I love about what the company offers investors who hold for the long term.
One of Suncor Energy's best features is its balance sheet. The Canadian oil giant set conservative leverage targets of a net debt-to-funds from operations (FFO) ratio of less than 3.0 times, and it plans to keep its total debt-to-capitalization between 20% to 30%, which should ensure that it has the financial flexibility to navigate the turbulent oil market. However, as of the end of the second quarter, the company's actual metrics were 1.7 times and 26%, respectively, which support its strong investment-grade credit rating. Further, it has ample liquidity at 8.1 billion Canadian dollars ($6.5 billion), including CA$2.4 billion ($1.9 billion) in cash and CA$5.7 billion ($4.5 billion) of available credit. Given these numbers, the company has the financial capacity to weather another oil market storm.
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Source: Fool.com