Energy Transfer Vs. Suncor: Eat The Cake Now, Or Later?

Summary

  • I am bullish on the overall energy sector and particularly bullish on Energy Transfer and Suncor.
  • To me, the difference between these two stocks is if you want to eat your cake now or later.
  • Energy Transfer’s 6.5% current yield better caters to investors who need current income.
  • There is no need to be under impressed by Suncor’s 4.5% yield either. Its growth potential and total shareholder yields easily make up the difference.
  • This idea was discussed in more depth with members of my private investing community, Envision Early Retirement. Learn More »

two girls eating cupcakes

Tara Moore/DigitalVision via Getty Images

Thesis

Readers familiar with my writing know that I am bullish on the overall energy sector under the current conditions. My view is that the oil price is overdue for a secular appreciation in the years

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This article was written by

18K Followers

Envision Research, aka Lucas Ma, has over 20+ years of investment experience and holds a Masters with in Quantitative Investment and a PhD in Mechanical Engineering with a focus on renewable energy, both from Stanford University. He also has 30+ years of hands-on experience in high-tech R&D and consulting, housing sector, credit sector, and actual portfolio management.

He leads the investing group Envision Early Retirement along with Sensor Unlimited where they offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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