Q: With the recent conflict in Israel, the forecasted coming recession in North America, and continued high interest rates for the foreseeable future, would now be a good entry point to buy SU? If not, what range would be reasonable to buy it at?
Would you say that SU has good looking prospects for an increase in share price for an investment horizon of 3 to 5 years? I am looking for a decent dividend to be accompanied by stock appreciation. Or, if the price appreciates significantly sooner than that, I could exit at that point too. Thank you for your insights.
Would you say that SU has good looking prospects for an increase in share price for an investment horizon of 3 to 5 years? I am looking for a decent dividend to be accompanied by stock appreciation. Or, if the price appreciates significantly sooner than that, I could exit at that point too. Thank you for your insights.
5i Research Answer:
We think SU is quite buyable today at 8X earnings with a 4.5% dividend. We would not buy it just because of the new conflict, but that will likely keep oil prices firm for while at least. We think the outlook for both capital growth and higher dividends is quite good over the next 3 to 5 years.