RE:ENBEnbridge moves and stores oil and does not produce or sell it so it sees very little upside to oil price increases. The oil price generally reflects the oil demand which is a sign of how much oil will be transported and how much pipes can expect to earn but the price is actually being manipulated up and down by supply constraints while demand is staying relatively steady so earnings from moving oil are also fairly flat even if they are close to peak. What is affecting ENB right now are interest rates, market sentiment of a possible recession and more recenlty the growing pains of a large acquisition. If your average cost buy in is above the current trading price you may want to consider lowering it by averaging down which will also increase your effective yield. Most of the market is down including banks and utilities (which is essentially what ENB is) and these financial troughs happen (The pandemic, he financial crisis, the 2015 crash) but the market always bounces back.
ENB is yielding over 7.5% and unlike a locked in GIC pays that to you quarterly.
It also provides a much more favourable tax treatment than a GIC.
Oh yeah, Go Enbridge!
KISMET1944 wrote: As a REAL investor in ENB, I find it disturbing that as the price of oil has been going up, the share price of ENB has gone south. What is the incentive for investing, or should we just hand over our money for free?
GLTA