SU - Husky Energy: Dividend Growth Is Stalled
Investment Thesis
Husky Energy Inc. (HUSKF) is advancing a capital plan that projects impressive free cash flow growth over the next 4 years. However, in the near term the company's free cash flow will be committed to capital and potentially a large acquisition. These capital commitments will delay the company's ability to resume dividend increases. Husky's dividend growth has been muted following the firm's dividend suspension in 2016 and subsequent reintroduction in 2018. Husky is currently undervalued and attractive on a historical and fundamental basis. Its current cheap valuation coupled with an enticing