RE:RE:RE:RE:RE:RE:Earnings Friday May 6 Before Market OpenQUIN - All valid points for sure, and yeah, i did expect my BNS to perform better. I always thought the higher the interest rates, the more money banks made and the more money they made, the higher their shares would go. Conversley, companies with a lot of debt like Enbridge, would feel more of a squeeze with higher interest rates as it would cost them more to carry their debt. But what do i know ?
The only thing with the bank stocks is they tend not be so drama laden as Enbridge. No one is trying to shut them down, and the only time you see a protest in regards to a bank is if they're funding Enbridge...LOL
Quin wrote:"Well max demand is max demand and full pipes are full.
We really can't sugar coat the fact that the share price can't grow without growth.
DId they grow?
EPS grew 1%, meh.
DCF grew 10% thats pretty good considering they are only giving out 3% more per year in dividends. Of course there is that NCIB if they choose to use it. Anyway the divvy appears safe.
Their guidance states:
"Our existing assets and execution of the secured capital program over our three-year plan is expected to support a 5-7% distributable cash flow per share compound average growth rate through 2024 relative to 2021. After providing for a strong balance sheet and ratable dividend growth, we'll possess $5-6 billion of annual investable capacity, which we'll continue to deploy in a disciplined manner to maximize shareholder returns."
That sounds promising. Analysts have some pretty wide ranging price targets from $53 CAD to $79 CAD. I have to admit the $79 CAD guy seems out to lunch and the $53 CAD is definately in the range if absolutely everything in the market goes for dump on Enbridge. The next highest analyst comes in at $67 CAD and he is a 4 star Morgan Stanly analyst so I'll take that as a wish list high.
A possible drop of 10% in share price married with a potential gain of 15% all well collecting a 6% yield that will increase 3% per year and can you think of a better place to put your money?
You and I own BNS. Do you expect it to perform better? I don't.
Right now Enbridge looks better than bank stocks. Especially with O&G demand rising.
It is certainly as safe as bank stocks. My Bank stock dropped more and they are getting higher interest rates now and forecasted to climb higher. Go ahead compare your bank stocks YTD share price performance with ENB's. Now compare the yield. ENB looks good huh? Real Good!
It does to investors too and until it doesn't I think we will see more money being invested right here.
Go Enbridge! ;-)"