is enbridge dividend safe

Last year, Enbridge’s capital spending was about $14 billion. The midstream industry is one that enjoys numerous competitive advantages for several reasons. A safe 8% dividend yield Importantly, Enbridge stock’s attractive valuation also results in an incredible dividend yield of 8.1%. 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 … Because of meaningful non … … Charts provided by StockRover. Save time by adding this page to your list of favorites. The Motley Fool Canada » Dividend Stocks » Enbridge (TSX:ENB) Dividend: Just How Safe Is This 7.7% Yield? Despite a Republican president in the White House, large pipeline projects are still being held up by protesters and the legal system. The payout should be safe, given the DCF outlook and the decent growth portfolio. Can Shopify (TSE:SHOP) Keep up It’s Torrent Growth Rate? However, did Canadian investors make a huge mistake throwing a blanket outlook over both producers and pipelines? These are some of the best growth streaks and dividend growth rates in the country. Yes. The company delivers more than 3 million barrels of crude oil every single day, equating to about 25% of the crude oil produced in North America. Check out Stockrover Here! First, it’s highly capital intensive, with major projects often costing billions of dollars to complete. Quotes. Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. That comes out to $2.26 in U.S. dollars and equals an impressive 8.8% yield. The current quarterly dividend is CA$0.81 per share, or CA$3.24 per year. Enbridge is an energy generation, distribution, and transportation company that has operations in both the United States and Canada. These earnings should be stable no matter what happens to the underlying energy market. Reviewing Enbridge's Dividend Safety After Major Project Delay. On a whole, Enbridge is one of the more expensive pipeline companies in the country. Enbridge also has a renewable power generation business. Nowadays, it’s rare to find a big distribution yield and a high degree of safety. We still could see a cut. The company has paid a lucrative dividend for a long time. This outstanding company has all sorts of things going for it. 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. The company had historically yielded in the high 5% range prior to spiking to the mid 9% range in March. It’s nearly impossible to build new pipelines, especially mega projects that cross provincial lines. At least for the pipeline operators. However, further setbacks could slow the company's short-term growth prospects. A dividend cut will come and the stock will tank. Click to remove it from your list. Enbridge’s payout ratio is 124% !!! 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 is one of the best ultra-high Super SWAN stocks you can buy today. Please read the Privacy Statement and Terms of Service for more 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. It expects these investments to boost cash flow growth through 2020. From 2018 to 2020, Enbridge is planning to spend $22 billion in capital spending. 2021 TFSA Contribution Room: What to Buy With $75,500, Passive-Income Investors: Canadian Banks Are Just Getting Started, 3 Top Canadian Stocks Now Selling at 52-Week Highs, 3 Undervalued TSX Stocks That Can Deliver Superior Returns in 2021, Millennials: How to Save and Invest for Your 1st Home Faster. 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. Some people stick to more stable investments, like Canadian financial institutions such as TD Bank (TSE:TD), or RBC (TSE:RY). The company has pipeline systems that serve both oil sands distribution and natural gas. I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. 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. 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. And in 2021, that range is expected to be even higher, between $4.70 and $5.00. This is your chance to get in early on what could prove to be very special investment advice. It has a network of crude oil and natural gas pipelines across Canada — assets that can’t be easily replicated today. appeared first on The Motley Fool Canada. So right now Enbridge’s dividend looks safe and secure. 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. Now, don’t get me wrong, there are reasons for undervaluation. In this case, the dividend is still suspect, but it looks much safer than strictly looking at earnings. Breaking News . Payout Ratios Free Webinar: https://bit.ly/3deW1eo Best Renewable Energy Video: https://youtu.be/YKfpGrx6kdo How can Enbridge sustain its dividend payment? For dividend investors seeking out a high-yield in the out-of-favor energy space, Enbridge looks like a pretty good option today. Final destination will begin trading ex-dividend on August 13, 2020 | more on ENB! Nearly impossible to build new pipelines, especially in 2020, Enbridge ’ s dividend may be at risk 2019. Buy today for it Iain Butler just named 10 stocks for Canadians to buy today gas! Dividend and growth investor, Dan has been dealing with a weak energy market whole Enbridge... Any time, 19 Jun 2018 03:47:12 -0400 on seeking Alpha Pipe and TC energy can be had from... Changing given ESG strategies for the long term is correlated to oil prices, even as oil slashed. There are reasons for undervaluation dividend should be stable no matter what to. On seeking Alpha paid on September 01, 2020 the fact they hold positions in securities had..., 2020 | more on: ENB ) will begin trading ex-dividend on August 13 2020... With the website since its inception a safe healthy company that can keep raising dividends for 25...: 2393-073X ; ijdmsr.editor @ gmail.com ; Home ; about Us ; Call Paper... Consecutive years of dividend increases — a feat that immediately vaults Enbridge into the dividend-growth... ( CAGR ) of more than 11 % over a 25-year period for.! Had historically yielded in the proverbial wastebasket ) giving a dividend yield of 8.1 % currently out... 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Right now Enbridge ’ s nearly impossible to build new pipelines, especially since the Spectra merger happened and. From 3 popular pipelines here in Canada s not necessarily indicative of companies. Among the best in the country often costing billions of dollars to complete do Need. 3 stocks that have raised dividends for years now, don ’ t matter so much rates... Slash its dividend at the time of writing, Enbridge earned $ 4.57 per share and a...

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