Enbridge (TSX: ENB) is the largest energy infrastructure company in North America. Its shares have moved up marginally in 2023 as of close on April 11. However, the stock is down 8.4% in the year-over-year period. This is despite benefiting from renewed momentum in the oil and gas space. Enbridge is certainly no slouch, but there are two dividend heavyweights that I prefer over the energy infrastructure giant right now. Let’s jump in.
Suncor is a dividend heavyweight that should be celebrating oil prices!
Suncor (TSX: SU) is a Calgary-based integrated energy company. The company specializes in the production of synthetic crude from oil sands. Canada’s oil sands have attracted controversy, as the country continues its green energy push. However, Suncor’s leadership has reiterated their importance, and former chief executive officer Steve Williams once stated that its oil sands business would still be here a century from now.
Shares of this dividend heavyweight have climbed 5.4% so far in 2023. This means that this energy giant has outpaced Enbridge on the price front. Indeed, its growth in 2023 has pushed Suncor stock into the black in the year-over-year period.
This company released its fourth-quarter (Q4) and full-year fiscal 2022 earnings on February 14, 2023. In Q4 2022, adjusted funds from operations (FFO) rose to $4.18 billion, or $3.11 per common share, compared to $3.14 billion, or $2.17 per common share, in Q4 2021. Moreover, production rose to $688,100 barrels per day (bbls/d) in Q4 — up from 665,900 bbls/d in the prior year. For the full year, adjusted operating earnings climbed to $11.5 billion compared to $3.80 billion in fiscal 2021.
Suncor stock currently possesses a very favourable price-to-earnings (P/E) ratio of 6.6. Meanwhile, this dividend heavyweight offers a quarterly distribution of $0.52 per share. That represents a very solid 4.7% yield.
Here’s another dividend heavyweight I’d love to own over Enbridge right now
Telus (TSX: T) is the other dividend heavyweight I’d look to snatch up, as we approach the midway point in April 2023. This Vancouver-based company provides a range of telecommunications and information technology products and services in Canada. Shares of Telus have climbed 7.1% in 2023 as of close on April 11. The stock has plunged 15% in the year-over-year period.
Investors got to see this company’s final batch of fiscal 2022 results on February 9, 2023. In Q4 2022, Telus delivered operating revenue and other income growth of 3.8% to $5.05 billion. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, aiming to give a clearer picture of a company’s profitability. Telus posted adjusted EBITDA growth of 11% to $1.68 billion in Q4 fiscal 2022.
Looking ahead to fiscal 2023, Telus projects operating revenue growth between 11% and 14%. Meanwhile, the company is forecasting adjusted EBITDA growth between 9.5% and 11% and free cash flow of approximately $2.0 billion.
Shares of this dividend heavyweight last had a solid P/E ratio of 24, putting Telus in better territory than the industry average. Meanwhile, Telus offers a quarterly dividend of $0.351 per share, which represents a 4.9% yield.
