Valued at a market cap of $68 billion, Suncor Energy (TSX:SU) is among the largest oil and gas companies in Canada. Suncor Energy is an integrated Canadian energy company operating across three segments: Oil Sands (producing and marketing bitumen and crude oil), Exploration and Production (offshore Canada operations and international assets), and Refining and Marketing (refining crude into petroleum products and retail sales).
Suncor Energy is part of a cyclical sector, and its earnings are closely tied to oil prices. For instance, when oil prices plummeted in 2020, Suncor reported a net loss of $2.24 billion, or $1.47 per share. Comparatively, it reported a net income of $11.6 billion, or $8.32 per share, when prices rebounded in 2022.
In 2025, Suncor is projected to pay shareholders an annual dividend of $2.28 per share, which translates to a forward yield of over 4%. These payouts have risen from $1.16 per share in 2016, significantly enhancing the yield at cost. However, the energy heavyweight was forced to lower its annual dividend from $1.68 per share in 2019 to $1.05 per share in 2021, during the COVID-19 pandemic.
In the last 10 years, Suncor Energy stock has returned 110% to shareholders after adjusting for dividend reinvestments. Comparatively, the broader TSX index is up more than 200% in this period.
Here’s another TSX dividend stock I’d buy over Suncor Energy right now. Let’s see why.
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Is this TSX stock a good buy?
Restaurant Brands International (TSX:QSR) is another dividend stock that offers you a yield of almost 4%. The fast-food giant went public in late 2014 and has more than tripled its shareholder returns since then.
Restaurant Brands International delivered impressive third-quarter results, demonstrating the company’s resilience in a challenging consumer environment. The parent company of Tim Hortons, Burger King, Popeyes, and Firehouse Subs reported comparable sales growth of 4% alongside system-wide sales expansion of 7%, resulting in operating income growth of nearly 9% and double-digit earnings-per-share gains.
The standout performer remains Tim Hortons Canada, which has posted its 18th consecutive quarter of positive same-store sales growth. The brand outpaced the broader Canadian quick-service restaurant industry by roughly three percentage points, driven by strength across multiple dayparts.
Breakfast foods grew by over 6% thanks to freshly cracked eggs and new loaded croissant sandwiches, while beverage sales reached record highs, with cold drinks rising by 10%. The chain has successfully expanded beyond its traditional breakfast stronghold with evening dinner deals attracting new customers.
International operations accelerated significantly, with same-store sales increasing by more than 6% and system-wide sales rising by 12%. The segment outperformed competitors in key markets including France, the United Kingdom, Spain, and Germany. Notably, Burger King China posted comparable sales growth of over 10% as the brand continues its turnaround under new local leadership.
Burger King in the United States maintained its momentum, with comparable sales rising over 3%, marking continued outperformance versus the broader quick-service burger category.
Restaurant Brands is also progressing on strategic initiatives to simplify its business model through refranchising Carrols restaurants and finding a new partner for Burger King China operations.
The brand’s focus on its signature Whopper platform, consistent value offerings, and operational improvements is resonating with customers. Franchisee confidence has reached near all-time highs following years of disciplined execution on the Reclaim the Flame turnaround plan.
Management remains confident in delivering at least 8% organic operating income growth for the full year, despite some softness in October south of the border.
The company’s diversified geographic mix provides insulation, with roughly 70% of operating profits generated outside America.
What is the QSR stock price target?
Analysts tracking QSR stock forecast revenue to increase from US$8.41 per share in 2024 to US$10.61 per share in 2029. In this period, adjusted earnings are forecast to grow from US$3.34 per share to US$5.17 per share.
Today, QSR stock trades at a forward earnings multiple of 16.6 times, which is lower than its five-year average of 20.6 times. If the TSX dividend stock is priced at 18 times earnings, it should gain 41% within the next four years. If we include dividends, cumulative returns should be closer to 60%.
