should I drop my SU. stock and move it over to TRP. for the div and eps?

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Asked on February 23, 2021 8:42 pm
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Good morning,

Only you can answer that question within the context of your own portfolio. For example, I own both SU and ENB but would not dump SU to buy more ENB (or TRP) because they are both two different investments and I already own enough pipelines. One is an oil company with both upstream and downstream operations, while the other is a midstream company. Yes, both are impacted by commodity prices but it is still comparing apples to oranges.

If you have no pipelines and you want more dividends, then perhaps the switch makes sense. Suncor cut the dividend while TRP has a strong, reliable and higher yielding dividend. On the flip side, in a rising oil environment, Suncor is likely to outperform given it is more impacted by oil prices. It is also the risker of the two.

All this to say, you need to make the decision within the context of your own portfolio and risk tolerance.

Mat

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Posted by Mathieu Litalien
Answered on February 24, 2021 4:15 am