Enbridge Inc T.ENB

Ex-divi reminder

[Marner]

It has been a few months since I last posted.  I changed computers so I had to sign up again.

I sold my entire ENB/ENS position on Friday.  Sometimes I wait until the last day be before it goes ex-dividend depending upon what I see in the quarterly reports.

The Q1 numbers were pretty much as expected which bumped the share price up.  I used the opportunity to sell.

I sold early because the guidance was uninspiring for me.  The fact that ENB is focusing on old school renewables is a negative imo as it pretty much insures 8% to 15% returns on investments.  Those are not terrible returns, but ENB can earn 20% or more ROI's on hydrocarbon projects.  

I like the fact that ENB intends to expand organically as it minimizes risk.  However, the fact that ENB has so little projected CAPEX dedicated to the organic projects provides an indication of slowing growth.

As a pipeline, ENB continues to have tons of debt.  Despite what the fear mongerers say, increasing interest rates are not a significant problem for ENB as the costs get passed on to their customers.  However, higher interest rates increase the competition for investment dollars and higher yields mean the bond market is more likely to steal investment dollars from companies like ENB.

I have been selling ENB before it goes ex-dividend and buying back a week or two later for the past 3 plus years.  This time, I'm not convinced that I'm getting back into ENB.

I still like ENB but the guidance of slower growth (they didn't actually say slower growth but you can read between the lines.  I think the company will grow at 5% per year as per its guidance through 2023, but I'm not confidant that growth won't slow down after that.  Even it the company does find a way to grow at 5%, I don't expect the dividends to grow at more than the 3% which is what we have seen over the past two years.  

It pretty much boils down to the fact that ENB enjoyed remarkable growth for a few years after its acquistion of Spectra, but the go-go days are over.  As such, ENB will no longer be a core position for me.

If a combination of a market tumble and the typical post-divi price smack down drives ENB back into the $40's, I may trade it, but there are too many attractive alternatives to ENB now.

At one time, the ENB thread on Stockhouse was excellent until the idiots took over.  I don't know who is posting here these days as I don't follow anymore.  However,  I would like to give a shout out to those who posted useful information or simply lurked here if they are still around.  

GLTA

[SargeX]

Hey Marner Top notch and insightful post and I agree with your comments. Congrats on your timing on all the ex-div sells and re-buys and a big congrats on your Friday sell. As you know, my wife and I are dividend income/growth investors and don;t really care about total retuns so we won't be selling any ENB for at least the next 3-5 years. We'll see how it plays out after that with the

[Quintessential1]

Whoever posted this is a big liar.  Either because they are not the 20k Window man or because the 20k window man stated unequivocally that he had sold his position previoulsy and was not buying back in. It is not that I don't think the 20k window man is not dumb enough to not be able to transfer his existing account to a new computer,  he is.   But I also think that he so

[Red_Deer]

FAKE MARNER ????? QUINT__You MAY be ONTO SomeThing !!!! Having to GET a NEW SH USER ID because of a New Computer__JUST DOES NOT COMPUTE !!