(MENAFN - Baystreet) Energy company Suncor (TSX:SU)(NYSE:SU) recently reported earnings and also announced a boost to its dividend. On Nov. 12, it reported strong third-quarter numbers with adjusted funds from operations totaling $3.8 billion. It also achieved record levels of refining throughput at 488,000 barrels per day.

On a per-share basis, the company reported earnings of $1.59, which is a 34% increase from the prior-year period when it posted $1.19.

The same day, Suncor also announced it would be increasing its dividend by approximately 5%. The new quarterly dividend of $0.57 is well below the company's quarterly earnings number, suggesting that there's still room for more increases in the future.

Over the course of a full year, Suncor's payout is $2.28 per share, translating into a yield of approximately 4% based on its current share price. If you wanted to collect $1,000 in dividends from the stock, you would need to invest approximately $25,000 right now.

Although Suncor has been a volatile stock to own in recent years due to the pandemic and fluctuating commodity prices, it can make for a stable long-term buy. This year, its shares have risen by around 35%. And based on analyst estimates, it's trading at a forward price-to-earnings multiple of 15, making it a reasonably priced buy.

If you're looking for a good stock to put into your tax-free savings account which can provide you with an excellent dividend, add some diversification, and protect against the effects of future inflation, Suncor can make for an excellent option to buy today.

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