Enbridge Inc T.ENB

yield vs total return

[Marner16]

There was a time when the mere thought of yield investing would have caused me a chuckle or a smirk.

As I have aged, yield has become a more important factor for me.

I took a swing at Tesla a couple of weeks ago and within a couple of days, I found myself completely uncomfortable and exited the position.  It seems that my wild wild west days of the past are long gone. 

Today, I look at yield and growth as equals in my investment decisions.  One without the other seems pretty much unpalatable for me now other than for small positions. 

ENB fits my current investment criteria to a "T".   

I just can't get motivated by the lack of growth potential in Canadian banks.  I don't know how the banks are going to be able to continue to squeeze out enough earnings growth to match the growth in dividends that their investors expect.  

Utilities are relatively safe investments that typically offer a decent dividend rate, but it is difficult to be inspired by their growth potential.

I can't get excited about telcos. BCE has a nice yield, but is up only 32% in the last 20 years.  Where is the growth going to come from going forward.  I think I will take a stab at Starlink when it goes public, 

I like Brookfield in the renewable market (ENB as well if I get my green coloured glasses on) but it is difficult to justify the prices of the renewables.  While I sit and wait for a dip, I jumped into a private renewable company that provides unicorn potential but obviously comes with a level of risk that probably doesn't make sense for someone of my age.  I have to admit that I like the adrenaline rush of a start up but the horse will have to grow a horn for it to become a core position.

Right now, my portfolio yields a little under 6%.  The yield was almost 8% a few months ago but  the market has moved up which has suppressed the current yield, which is not a bad thing. 

I would be interested in what others think about yield vs total return and if their thoughts have shifted over the years.

[willyk3]

Great post, I echo your thoughts on yield investing. Got scared out of Enbridge with this Widmer fiasco, so have decided to wait it out with Fortis Its been my experience that political decisions are the cause of some of my worst investment woes Like Telus ..like their exposure to some techy sidelines Aecon has a nice yield and its a good business..allways seems to get no respect so I just hang

[Marner16]

willyk3: great feedback....it is the reason i come to SH

[splitbolt1]

To willyk;  ANY NEWS ON ENB WILL ONLY BE GOOD NEWS THAT WILL CAUSE IT TO ROCKET

[youknowwhat]

Marner I like reliable yield thus there has to be a history of dividend payments. Sounds like you and I maybe close in age. I do like Canadian banks for their dividends. BMO first started paying dividends in 1829 and have never missed one yet. CIBC in 1859 same story. I jumped on them when they got crushed in 2020 not  at the bottom but about half way back. I sleep well at night with them

[Marner16]

"my wife has the ability to hold a nickel until the beaver craps" I laughed out loud.  Never heard that one before and I thought I had heard them all.

[masfortuna]

Just as an fyi, Canadian banks have underperformed the market the last 5 years. Depending on the bank, growth will take different shapes and forms (i.e BNS-Emerging Markets, TD-US Footprint...). They really don't have too much to worry about as they will surge if interest rates rise (which I think they will) increasing profits and margins. I started buying Insurance companies (Manu and Great

[silkos]

Mas, Canadian Banks & Insurance cos are great - Hold both in my CAD RRSP ... this portfolio I don't quite touch unless there are signs that the sky is falling. US Big Banks outperformed both CAD Banks + Insurance Cos though. Take a look yourself :)

[TickerTwit]

No theme to this, just a collection of thoughts ... I retired early, mainly for health reasons. I was self-employed so my 'pension' is based on investments. As the retirement possibility loomed I went for capital growth at first (100%), but eventually began shifting to dividend and dividend growth (now about 90%). I took notice of the Amazon threat and thought it would be good to aim

[stocktalk]

Well stated Marner, when we all get older we need a basic of core holdings as   this is our retirement fund. Long Enbridge, Go Leafs Go !!!!

[masfortuna]

Marner Unless you sold out of your positions when the yield was at 8% and rebought now, your yield on the shars you own based on the price you paid should still be 8%. I got a whack of ENB at $39.50 and although the share price has moved up decreasing the yield, my shares still get me the same yield that I was getting on day 1 (actually a little more since Enb bumped up the divy a tad in the last

[TickerTwit]

Marner is correct to look at today's yield and not look backward. Money spent in the past is gone and no longer matters; what matters is what you still have today from what you bought yesterday and what you should do with it going forward. .

[Backinblack1000]

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[Fantome]

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