Cut your Resources risk with these leaders

Article Excerpt

Dividend payments from companies in the Resources sector tend to be more volatile than those from firms in Utilities and Finance. That’s because their cash flows are tied to the underlying commodities they produce. It’s also why we continue to advise you to focus on Resources companies with the financial strength to keep paying you even if commodity prices fall. Here’s two stellar examples we recommend to you as a subscriber to Dividend Advisor. SUNCOR ENERGY INC. $42 is a buy. The company (Toronto symbol SU; Cyclical-Growth Payer Portfolio, Resources sector; Shares outstanding: 1.5 billion; Market cap: $63.0 billion; Dividend yield: 4.0%; Dividend Sustainability Rating: Above Average; www.suncor.com) is Canada’s largest integrated oil company, with major projects in the Alberta oil sands. Investors also tap into its four refineries (three in Canada and one in Colorado), along with its 1,500 Petro-Canada gas stations. Suncor last raised your dividend in March 2019. Investors now receive $0.42 a share, up 16.7% from $0.36. The new annual rate of $1.68…