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Investing on his own since he was 19 years old, Dan has compiled the experience and knowledge needed to be successful in the world of self-directed investing, and is always happy to bring that knowledge to Stocktrades.ca readers and any other publications that give him the opportunity to write. This means that large players like Enbridge, with vast access to low-cost capital, have a major advantage over smaller rivals. Is Enbridge (TSX:ENB) a Better Dividend Stock Than Toronto-Dominion Bank (TSX:TD)? Passive Income: 3 Stocks That Have Raised Dividends for Over 25 Years. The Enbridge stock is a must-buy for investors seeking a growing income stream. Meanwhile, it paid $6 billion in dividends in 2019. Prior to getting started, I’d just like to drop this 5 year performance chart from 3 popular pipelines here in Canada. It wasn’t that long ago that major producers like Suncor and Canadian Natural Resources were urging the government to make sweeping changes to the operations of Enbridge’s mainline network, citing it as essentially unfair. An active dividend and growth investor, Dan has been involved with the website since its inception. Don’t worry; this 7.7% yield isn’t going anywhere. Published Tue, 19 Jun 2018 03:47:12 -0400 on Seeking Alpha. A dividend cut will come and the stock will tank. The Motley Fool owns shares of and recommends Enbridge. But with that said, Enbridge’s dividend safety has weakened over the years, especially since the Spectra merger. Enbridge's (ENB) shares have been suffering of late due to the perceived weakness of the dividend. Enbridge Dividend and Safety. There’s just one problem. Despite a Republican president in the White House, large pipeline projects are still being held up by protesters and the legal system. Despite these subsidiaries offering investors a lot of positives, many investors are worried. Hard to walk away from this. It is important to seek out a qualified investment, tax or legal professional before making any decisions related to your own personal investments. But now that we continue to move forward through the COVID-19 pandemic, the oil and gas industry (which was already in a bear market prior to the pandemic) is getting hit even harder. Fool contributor Nelson Smith owns shares of ENBRIDGE INC. This is a significant discount to what it typically has traded at over the last 5 years (20.4) and the company is also trading at a price to book valuation of 1.3, levels at which we’ve never seen a blue-chip stock like Enbridge trade at. Current Issue This year will have a lot of unknowns. However, the ability to grab market-beating returns strictly from the dividend with one of Canada’s largest companies and longest consecutive dividend growers is no doubt appealing. It expects these investments to boost cash flow growth through 2020. Or is Enbridge’s dividend on its way to inevitable cut as well? Enbridge common shares have a Compound Annual Growth Rate (CAGR) of more than 11% over a 25-year period. Let’s take a closer look at this payout to see if it’s sustainable. So, lets get down to the brass tacks and look at the company’s primary attraction, it’s juicy dividend yield. We’ll get to valuation shortly, but I wanted to highlight that as it is a primary factor for the company sporting a 8.39% dividend yield, which most would deem unsustainable. So right now Enbridge’s dividend looks safe and secure. Enbridge (TSE:ENB) is one of the more popular options when it comes to Canadian dividend stocks. There’s no questioning that Enbridge’s stock price is currently in the dirt. … A cash dividend payment of $0.603 per share is scheduled to be paid on September 01, 2020. A similar situation is playing out in the United States. The current quarterly dividend is CA$0.81 per share, or CA$3.24 per year. Stocktrades offers strictly investment opinions, not investment advice. That’s also great news for companies like Enbridge that own a lot of assets in the U.S. And then there’s Enbridge’s gas utility business, which provides natural gas for some 3.8 million customers in Ontario and Quebec. Let’s take a closer look at this payout to see if it’s sustainable. After a busy 2018 in which Enbridge (ENB) rolled up its MLPs to simplify its corporate structure, management delivered some bad news on March 1, 2019, announcing a one-year delay on the firm's $6.8 billion Line 3 … In an industry plagued with misinformation, our main priority is to maintain complete objectivity and bring investors around the world accurate, timely and high quality investment news and information. Shares are currently trading around the $32 level, which is a far cry from the $40 level we saw at the start of the year. There’s two ways to look at this. Like the pipeline business, this part of the company delivers steady earnings and is protected from competition. The other moat creating advantage is the highly regulated nature of the business. It’s nearly impossible to build new pipelines, especially mega projects that cross provincial lines. This is not a low risk investment, and if you’re an investor with a quick trigger finger in terms of selling, this may not be for you. For every dollar they take in they pay out 1.24$. Enbridge (TSX:ENB)(NYSE:EMB) has long been one of Canada’s most popular dividend stocks, and it’s easy to see why. Some companies like Pembina Pipe and TC Energy can be had, from strictly a valuation standpoint, for less than Enbridge. Do I think Enbridge’s dividend is safe, and well covered by cash flows? Please read the Privacy Statement and Terms of Service for more information. Enbridge’s forward dividend is now $3.24 CAD ($2.43 USD) giving a dividend yield of about 6.0%. The oil and gas industry is expected to struggle, and although we’re seeing Enbridge trade at valuations we haven’t witnessed in some time, we’re also seeing the company post historically low numbers in terms of return on equity and net margins on a trailing 12 month basis. Do I think Enbridge’s dividend is safe, and well covered by cash flows? For dividend investors seeking out a high-yield in the out-of-favor energy space, Enbridge looks like a pretty good option today. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. Can Enbridge grow the business and the dividend? The dividend is safe when you consider ENB distributable cash flow. Do you think a company with that kind of excellence will slash its dividend at the first sign of bad news? Its current dividend is $3.24 per share. Enbridge is one of the best ultra-high Super SWAN stocks you can buy today. More.

And of course, auxiliary divisions like power generation and electric transmission lines reported barely a blip in business activity. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. That should be an encouraging sign. Microsoft says it found malicious software in its systems . They see a high payout ratio and assume the dividend is close to being cut. And in 2021, that range is expected to be even higher, between $4.70 and $5.00. Check out Stockrover Here! It projected distributable cash flow of between $4.50 and $4.80 per share for 2020. I suspect they are doing this so Investors won’t jump ship but this is not sustainable right? Enbridge was also telling investors to expect solid long-term growth before COVID-19 threw markets for a loop. Overall, the company has actually increased its distributable cash flows year-over-year and the company expects to generate $5.143 billion in DCF in 2020, an increase when compared to 2019. New projects and price increases will help drive earnings growth, too. Surface analysis. Market Cap: $78.16 billion Forward P/E: 14.48 Yield: 8.39% Dividend Growth Streak: 24 years Payout Ratio (Earnings): 126.56% Payout Ratio (Free Cash Flows): 89.28% Payout Ratio (Operating Cash Flows): 65.92% 1 Yr Div Growth Rate: 9.99% 5 Yr Div Growth Rate: Premium Members Only Stocktrades Growth Score: Premium Members Only Stocktrades Dividend Safety Score: Premium Members Only. Breaking News . But volatile energy prices have kept investors on the sidelines.The post Enbridge Stock Is Yielding 8%, But Is it Safe to Buy? Canada Revenue Agency: Do You Need to Repay CERB Money? At about 50% of total earnings they’re not enough to cover the dividend alone, but they still offer peace of mind for investors who worry about the oil market. The issue is more over the long term, as struggling energy companies simply can’t afford to pay their bills. That comes out to $2.26 in U.S. dollars and equals an impressive 8.8% yield. For most investors this would be cause for concern, however it’s important for a company like Enbridge that we look at both the free and operating cash flow payout ratios. If there’s one thing I’ve come to learn, especially in 2020, it’s to expect the unexpected. 2020 might see a pause on these initiatives, but they’re both viable strategies for the long term. Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. If there’s one thing I’ve come to learn, especially in 2020, it’s to expect the unexpected. I doubt it. Nelson Smith | May 6, 2020 | More on: ENB ENB. Because of meaningful non … This is more than triple the S&P 500’s average of ~1.9%, which seems to make it a good option for those seeking a high yield stock for income. Dan is primarily a researcher and writer here at Stocktrades.ca, and his pieces have numerous mentions on the Globe and Mail, Forbes, Winnipeg Free Press, and other high authority financial websites. Enbridge: Dividend Is Safe. Enbridge is often touted as a monopoly in the pipeline sector, amassing over 27,564 kilometers of active crude pipelines across North America. Dan manages his TFSA, RRSPs and a LIRA at Questrade, and has compiled a real estate portfolio of his primary residence and 2 rental properties, all before his 30th birthday. However, Stocktrades is by no means associated with the Toronto Stock Exchange, or any of the companies we cover. But Enbridge believes the dividend is safe and projects that its distributable cash flow (DCF) will continue to grow at a rate between 5% and 7% over the long term. This page has been added to your list of favorites. Currently, Enbridge offers a high forward yield of 8.1%. An investment in Enbridge for its dividend is going to require one to be willing to withstand the inevitable volatility the oil and gas sector is going to bring for the foreseeable future. But does that make it a guarantee the company maintains its dividend? I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. For example, pipeline project… Current as of December 18, 2020. The company had historically yielded in the high 5% range prior to spiking to the mid 9% range in March. As specialists in … Remember, Enbridge has been dealing with a weak energy market for years now, and it has been weathering that storm just fine. Payout ratio calculation and chart. The mass panic and ultimate selloff of many companies in the oil and gas sector left Canadians who were paying attention with some bargains, Enbridge being one of them. From 2018 to 2020, Enbridge is planning to spend $22 billion in capital spending. These are some of the best growth streaks and dividend growth rates in the country. COVID-19 happened, and it is impacting the entire energy sector in a big way. The post Is a Dividend Cut Coming for Enbridge (TSX:ENB) Stock? However with it being an industry leader and sporting a huge dividend yield, I’m not surprised investors are willing to pay a premium for the company right now. In fact, the company recently announced in June 2020 that it would be moving forward with its Fecamp project, which is expected to add 500 megawatts of capacity and a 20 year fixed-price contract. Quotes. In fact, with most of the high-dividend stocks that cross my desk, I toss them in the proverbial wastebasket. Reviewing Enbridge's Dividend Safety After Major Project Delay. Do I think investors looking solely at the company’s payout ratio in terms of earnings are making a mistake? Enbridge Inc. (ENB) Dividend Safety metrics. One piece of good news for investors who might be worrying about Enbridge’s dividend is the stability of its natural gas utility and power generation businesses. This article was coproduced with Dividend Sensei and edited by Brad Thomas. Meanwhile, it paid $6 billion in dividends in 2019. Furthermore, if you’re not willing to accept the fact that although unlikely, a dividend cut would inevitably cause significant losses in capital due to the share price dropping, Enbridge is probably not for you. TFSA Investors: 3 Safe Dividend Payers Yielding up to 6.3% Considering we are in the midst of a global pandemic that has wreaked havoc on oil prices, this is a strong sign. It’s North America’s largest gas utility by volume. Can Shopify (TSE:SHOP) Keep up It’s Torrent Growth Rate? Around $40/share, this business keeps doing incrementally better. Enbridge (TSE:ENB) Dividend & Stock Analysis – Is It Safe? Hier erhalten Sie eine Übersicht über die Dividendenzahlung und Dividendenrendite von ENBRIDGE sowie die anstehenden und vergangenen Hauptversammlungstermine (HV-Termine). However, further setbacks could slow the company's short-term growth prospects. That marks 25 consecutive years of dividend increases — a feat that immediately vaults Enbridge into the elite dividend-growth stocks in Canada. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you. I’ve can’t count the amount of times I’ve come to Enbridge’s defense when somebody accuses the dividend of being on the brink of being cut. 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