Fool contributor Nelson Smith owns shares of ENBRIDGE INC. The company also has a number of projects in its developmental pipeline, including multiple offshore wind farms that have the potential to generate 1 gigawatt in gross power capacity. Microsoft says it found malicious software in its systems . Meanwhile, it paid $6 billion in dividends in 2019. Or is Enbridge’s dividend on its way to inevitable cut as well? Breaking News . 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. There’s two ways to look at this. For 2020, it expects DCF to fall within a range of $4.50 and $4.80. 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. The company has pipeline systems that serve both oil sands distribution and natural gas. More. These earnings should be stable no matter what happens to the underlying energy market. While that payout ratio looks concerning, it’s not necessarily indicative of the company’s ability to continue paying its dividend. Its current dividend is $3.24 per share. Enbridge is one of the best ultra-high Super SWAN stocks you can buy today. I doubt it. 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. Considering we are in the midst of a global pandemic that has wreaked havoc on oil prices, this is a strong sign. March 22, 2019. 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. A cash dividend payment of $0.603 per share is scheduled to be paid on September 01, 2020. 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. He has become an authority figure in the Canadian finance niche, primarily due to his attention to detail and overall dedication to achieving the highest returns on his investments. 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. However, further setbacks could slow the company's short-term growth prospects. Can Enbridge grow the business and the dividend? They see a high payout ratio and assume the dividend is close to being cut. Surface analysis. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. This oil still has to be transported to its final destination. DISCLAIMER:Stocktrades is an independent media portal covering the development related to stocks on the TSX. Investors are worrying about all the extra inventory out there. Yes. Can Shopify (TSE:SHOP) Keep up It’s Torrent Growth Rate? Yes, pipelines do have less reliance on the price of oil when compared to say a producer, however these companies still can’t survive in low commodity environments for long. We previously reviewed these issues and do not expect them to affect Enbridge's dividend safety profile, even if Line 3 were to be scrapped. Enbridge: Dividend Is Safe. The Motley Fool owns shares of and recommends Enbridge. 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. 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.

And of course, auxiliary divisions like power generation and electric transmission lines reported barely a blip in business activity. It is important to seek out a qualified investment, tax or legal professional before making any decisions related to your own personal investments. A quick look at the numbers tells us investors who rely on Enbridge’s dividend for income don’t have much to worry about. To compare this to another prominent pipeline company Pembina Pipeline (TSE:PPL), it paid out around 133% of free cashflows towards the dividend in 2019. Enbridge (TSE:ENB) Dividend & Stock Analysis – Is It Safe? Currently, Enbridge offers a high forward yield of 8.1%. But with that said, Enbridge’s dividend safety has weakened over the years, especially since the Spectra merger. All Instrument Types; Indices; Equities; ETFs; Funds; Commodities; Currencies; Crypto; Bonds; Certificates; No results matched your search. The post Is a Dividend Cut Coming for Enbridge (TSX:ENB) Stock? Hier erhalten Sie eine Übersicht über die Dividendenzahlung und Dividendenrendite von ENBRIDGE sowie die anstehenden und vergangenen Hauptversammlungstermine (HV-Termine). Enbridge is an energy generation, distribution, and transportation company that has operations in both the United States and Canada. 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. For dividend investors seeking out a high-yield in the out-of-favor energy space, Enbridge looks like a pretty good option today. All Instrument Types. 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. Enbridge’s forward dividend is now $3.24 CAD ($2.43 USD) giving a dividend yield of about 6.0%. This outstanding company has all sorts of things going for it. These are some of the best growth streaks and dividend growth rates in the country. On your next visit, you'll find a shortcut to this page in the main menu . We believe, though, that dividend viability fears are over-exaggerated. 7 Small-Cap Canadian Stocks To Buy In 2020, The 5 Best Canadian Bank Stocks to Buy Now. I’d argue in the short term, such a scenario doesn’t matter so much. Search website for: Popular News. Dividends and Common Shares. Many of Enbridge’s customers are among the best in the sector, but even those companies are hurting today. More reading. 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. I understand I can unsubscribe from these updates at any time. This outstanding company has all sorts of things going for it. This means that large players like Enbridge, with vast access to low-cost capital, have a major advantage over smaller rivals. Enbridge (TSX:ENB)(NYSE:ENB) is paying a dividend yield of around 8%, but investors shouldn't expect it to last. While its dividend is appealing today and the company is still producing strong results today, I wouldn’t rely on its dividend for the long term given all the uncertainty that exists today, especially considering the size of the payments that Enbridge is making. Despite the challenges, Enbridge reaffirmed its DCF outlook and expects to generate DCF per share of $4.50 to $4.80 in 2020, which implies its payouts are … For every dollar they take in they pay out 1.24$. In fact, with most of the high-dividend stocks that cross my desk, I toss them in the proverbial wastebasket. Remember, Enbridge has been dealing with a weak energy market for years now, and it has been weathering that storm just fine. Overall, Enbridge’s dividend should be safe. Around $40/share, this business keeps doing incrementally better. The information on Stocktrades.ca represents the views of the authors and should not be misconstrued as advice. 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. They think Enbridge’s dividend may be at risk. That gives us a payout ratio of just over 70%, which is very sustainable. Enbridge has paid dividends since 1953. … They think Enbridge’s dividend may be at risk. But does that make it a guarantee the company maintains its dividend? First, it’s highly capital intensive, with major projects often costing billions of dollars to complete. Reviewing Enbridge's Dividend Safety After Major Project Delay. 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. Simply click here to discover how you can take advantage of this. Let’s take a closer look at this payout to see if it’s sustainable. Yes. New projects and price increases will help drive earnings growth, too. 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. Enbridge (TSE:ENB) is one of the more popular options when it comes to Canadian dividend stocks. A dividend cut will come and the stock will tank. However, did Canadian investors make a huge mistake throwing a blanket outlook over both producers and pipelines? The company has paid a lucrative dividend for a long time. 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. That said, the demand for oil and natural gas has not just declined but fallen off a cliff amid the pandemic. 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