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I Own The Gas Pump With 6% Yields And 5% Dividend Growth: Sunoco

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⚡ Quantum Brief
Sunoco has nearly doubled its assets through the 2025 Parkland acquisition, solidifying its position as a leading global fuel distributor with expanded market reach. The company projects at least 5% annual dividend growth, with Sunoco LP (SUN) yielding 5.9% and Sunoco Logistics (SUNC) offering a higher 6.4% yield. Adjusted EBITDA and distributable cash flow are forecast to rise significantly in 2026, following a 36% increase in 2025 (excluding transaction costs). Robust fuel demand and strategic acquisitions underpin Sunoco’s 16% total return target for the next year, backed by resilient operational fundamentals. The analysis highlights Sunoco’s strong dividend growth potential and cash flow stability, positioning it as an attractive income investment in the energy sector.
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Treading SoftlyInvesting GroupFollow5ShareSavePlay(16min)CommentsSummarySunoco (SUN) has transformed into a leading global fuel distributor, nearly doubling its assets with the 2025 Parkland acquisition.SUN expects at least 5% distribution growth and currently yields 5.9%, with SUNC offering an even higher 6.4% yield and similar dividend growth.Adjusted EBITDA and distributable cash flow are set to rise meaningfully in 2026, following a 36% increase in 2025 (excluding transaction costs).With robust fuel demand and strategic acquisitions, SUN targets a 16% total return over the next year, supported by resilient fundamentals.Looking for more investing ideas like this one? Get them exclusively at The Dividend Kings. Learn More » Nandani Bridglal/iStock Editorial via Getty Images Visiting the gas pump is a nearly weekly ritual for most of us, especially if you have a long commute to work. Gas prices don't really matter that much to you because you have toThis article was written byTreading Softly4.29K FollowersFollowScott Kaufman, aka Treading Softly, learned about investing firsthand from over a decade of financial sector experience. He is the lead analyst for Dividend Kings providing actionable insight into high quality dividend growing and undervalued opportunities. His focus is to see a bountiful harvest of cash dividends and strong capital gains, providing a robust total return.Analyst’s Disclosure: I/we have a beneficial long position in the shares of SUN, SUNC, ET.PR.I either through stock ownership, options, or other derivatives. 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. Kody's Dividends, Justin Law, and Rachel Kaufman are part of the Dividend Kings teamSeeking 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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