RE:Another BNN fund manager embarrassmentExactly
Marner16 wrote: https://www.bnnbloomberg.ca/video/bruce-murray-discusses-enbridge~2089552
Bruce Murry is asked about Enbridge. Instead of being an adult and saying that they don't have ENB in their portfolio and admit that he is not up to speed on the company (which is not a sin as you can only focus on a limited number of equities), Bruce stumbles along making a complete fool of himself.
Murray tells us that institutions loved the stock 5 years ago when the share price was in the 50" and 60's. He generalizes about the difficulites of building pipelines in the current political climate. He then tells us that ENB pays an 8% dividend but will never return to its old highs.
Riddle me this: If ENB continues to raise its dividend by 6% per year, in twelve years, the dividend will be $6.48 per year which would make the yield 16%. Does that sound like a reasonable yield for a company that is a dividend aristocrat that is an industry leader with a huge moat, is a leader in renewables in its industry, and has incredibly predictable and stable earnings? When you look at ENB in light of the above, does 8% seem like a reasonable yield? If the answer is no, then ENB should be in your portfolio.
Bruce Murray's performance was an embarrassment to the investment advisory industry. He provided no explanation why the stock was a darling on the street and what changed. He offered no information about the update to Line 3 and how the decision this week places ENB in an even greater position to dominate its industry.
I wouldn't let the CEO and the CIO of Murray Wealth Group take my dog for a walk.