Valued at a market cap of $68 billion, Suncor Energy (TSX:SU) is among the largest energy companies in Canada. Suncor Energy is an integrated energy company focused on Canada’s Athabasca oil sands.
Operating through four segments (Oil Sands, Exploration and Production, Refining and Marketing, and Corporate), Suncor recovers bitumen through mining and in situ operations. It conducts offshore operations in eastern Canada and the North Sea, refines crude oil into petroleum products, and operates renewable energy assets, including four wind farms.
Moreover, it markets petroleum products under the Petro-Canada brand and trades in crude oil, natural gas, and power.
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Is the TSX dividend stock a good buy right now?
Over the last three decades, Suncor Energy has returned 2,250% to shareholders. However, if we adjust for dividend reinvestments, cumulative returns are much higher at 4,150%. In 2025, Suncor offers shareholders an annual dividend of $2.28 per share, translating to a forward yield of almost 5%. In the last 28 years, Suncor Energy has raised its dividends at an annual rate of 12.7%, which is exceptional for a cyclical company.
However, Suncor has trailed the broader indices in the last 10 years. Since the end of March 2015, the TSX stock has returned 118% to shareholders in dividend-adjusted gains, compared to the broader index, which gained 130%.
Moreover, analysts expect Suncor Energy to raise its dividends by just 3.3% year over year in the next two years, which is not that attractive. In this article, I have identified another TSX dividend stock that should outpace Suncor in 2025 and beyond.
The bull case for this TSX stock
Bird Construction (TSX:BDT) is a leading Canadian general contractor with a market cap of $1.2 billion. Founded more than 100 years ago, it specializes in industrial, commercial, and institutional projects.
Bird provides construction services, including structural, mechanical, electrical, and civil works. With expertise in building manufacturing facilities, power infrastructure, and commercial developments, it offers specialized services like metal fabrication, asbestos abatement, and high-voltage testing.
Bird’s civil construction capabilities include site preparation, foundations, and hydroelectric projects. The company also constructs and renovates healthcare facilities, educational institutions, government buildings, and mixed-use residential developments.
The TSX stock went public in early 2006 and has since returned 1,200% to shareholders. Despite its outsized gains, BDT stock is down 34.5% below all-time highs, allowing you to buy the dip and benefit from a tasty dividend yield of 4.1%.
Bird Construction’s revenue is forecast to increase from $3.4 billion in 2024 to $4.71 billion in 2027. Moreover, adjusted earnings per share are on track to reach $4 in 2027, up from $2.04 in 2024.
Analysts expect the Canadian company to expand its net income margin by 50% over three years. This expansion of profit margins should help it increase dividends consistently. Bay Street forecasts its dividends per share to grow to $1.12 in 2027, up from $0.85 in 2025.
Bird Construction’s annual dividend expense is around $47 million. Moreover, its free cash flow is projected to rise to $90 million this year, indicating a payout ratio of less than 60%.
Priced at five times forward (2027) earnings, the TSX stock is quite cheap and trades at a discount of 50%, given consensus price targets.
