Added moreI used the price dip to add some ENB even though I was already overweight.
Big Al's comments were very positive imo as his tone was good. For me, it is more about tone than historical numbers. The only cautionary tone that I heard was regarding the uncertainty about when the efficacy of vaccines would allow things to get back to normal. Regardless, everything is in good share while we wait.
The fact that DCF attributable to shareholders was positive in Q4 is a great sign IMO. The worst is in the rear view mirror and operations are already at a level where they fully support the dividend.
Line 3 will begin adding another billion dollars per year of cash flow ($0.50/sh) in six or seven months.
Demand for heavy oil remains strong.
Demand for lighter oil is still soft and Al's tone was cautious
ENB intends to continue operating Line 5 and fight it out in court.
I suspect that ENB will be raising the dividend by the full 7% at Enbridge Day in 10 months based upon an upgraded Line 3 being fully operational. That would increase the dividend to $3.57 which equates to a yield of over 8% at the current price. That's good enough for me.
When Line 3 is completed and Line is no longer a concern, I don't see how the yield on ENB should be higher than 5%. The big 6 Canadian banks are currently yielding 4% to 5% and I would much rather own ENB than any Canadian bank.
If the market really does price in events 6 months into the future, then ENB looks like a steal today.