Q: For a conservative investor making an initial investment in o&g industry ( other than owning ENB ), which would you suggest ?
I like the integrated biz and very long reserves of SU and the proven management and size of CNQ.
Which company can handle lower oil prices best ? Which is more dividend growth friendly ?
I’m thinking either one is fine and it’s a coin toss, but any further considerations you can provide would be appreciated.
Thanks, Derek.
I like the integrated biz and very long reserves of SU and the proven management and size of CNQ.
Which company can handle lower oil prices best ? Which is more dividend growth friendly ?
I’m thinking either one is fine and it’s a coin toss, but any further considerations you can provide would be appreciated.
Thanks, Derek.
5i Research Answer:
We agree both look totally fine to us. CNQ has a better dividend growth record. SU likely can handle lower oil prices better. It is essentially a wash, we think. Valuation is essentially the same. SU is outperforming this year, but has a lower dividend (by 1.18 percentage points). We would side with SU but either one works.