Sunoco: Why I'm Upgrading This 7%-Yielder To A 'Buy'

Gen AlphaInvesting GroupFollow5ShareSavePlay(9min)CommentsSummarySunoco LP now trades in the lower half of its 52-week range, offering a well-covered 7% yield and attractive valuation.SUN's $9B Parkland acquisition is expected to deliver over 10% DCF/unit accretion by 2028, supported by $250M in synergies.Q3 results showed robust EBITDA growth, strong volume momentum, and disciplined capital deployment across all business segments.I upgrade SUN from 'Hold' to 'Buy', citing undervaluation, merger synergies, and a credible path to potentially strong annual total returns. turk_stock_photographer/iStock via Getty Images It pays to be patient when it comes to dividend stocks, especially when there are so many to choose from. Being engaged with price movements on a basket of stocks means that there is almost always somethingThis article was written byGen Alpha22.72K FollowersFollowI am Gen Alpha. I have more than 14 years of investment experience, and an MBA in Finance. I focus on stocks that are more defensive in nature, with a medium- to long-term horizon. I provide high-yield, dividend growth investment ideas in the investing group iREIT®+HOYA Capital. The group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SUN over 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. I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.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.