Enbridge Inc T.ENB.PR.Y

Surprise dividend increase?

[Marner16]

I was doing some fact checking on the ENB website and was reminded that the CAGR for ENB's dividend has been 10% over the past 26 years (slide 5).

Last December, ENB announced on Enbridge Day that the BoD intended to increase the dividend in 2021 by 3% to $0.835 in Q1.  ENB mgmt is extremely conservative, and in December 2020, there were more questions than answers when it came to covid.  As such, it was understandable that they targeted an ultra-low 3% increase for the dividend for the year. 

It has been 7 months since ENB Day and we still have another month before ENB announces its Q2 numbers.  The vaccine and covid numbers hve been impressive in recent months.  In addition, oil prices have stabilized which means the business environment for ENB shippers is booming.

While ENB has been pretty consistant with providing only one dividend increase per year in recent years, the company has also been consistant in providing much higher than 3% dividend increases over those years.

I think ENB would like to see the completion of Line 3 for optics and determine the implications of the CER decision in regards to the Mainline hearing before making a decision on a possible dividend increase.  With the recent announcement by the USACoE in regards to completing an EIS, I think the Line 5 factor has gone dormant for awhile and as such will have no impact on the ENB financials.

I don't expect a dividend increase announcement in Q2, but it is not beyond the realm of possibility. It would not be unprecedented for ENB to raise its dividend again at some point this year.

[Fantome]

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[ckwong]

ENB Dividend Increase, Yield and Share Price in C$ The above chart may help to explain the observations from Marner and Fantome. Most of the time, the dividend increase is about 10%. It can be as healthy as 35% (2015) or as minimal as 3% (this year). The dividend raise is very regular. Two exception could be found. Once in 1999, a second dividend increased in August after May. And

[ckwong]

Add the picture

[silkos]

Good post! It's good to be reminded why we got into ENB in the first place. The last div increase ratio was just enough not to spook the market, ENB management showed strength and confidence with a minimal increase. Better times ahead for sure!

[Fantome]

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[ckwong]

Thank you for your encouragement, Fantome. I am interested in the dividend more than the share price. If I sell ENB, I have to find another one.  If the dividend keeps on 10% CAGR, my ENB income will be double every 7-8 year. I will be smiling ear to ear.

[Fantome]

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[Marner16]

CK wrote: "I am interested in the dividend more than the share price. If I sell ENB, I have to find another one.  If the dividend keeps on 10% CAGR, my ENB income will be double every 7-8 year. I will be smiling ear to ear." What you said is true as per the rule of 72. What you didn't say, is that the market value of the shares will likely more than double.  I know that

[ckwong]

Marner, good advise about capital gain for inflation protection. I'll review my portfolio. It is easy to develop tunnel vision when you do not talk to your peer.

[TickerTwit]

It depends on what your investment goals are. My focus is income and income growth. While I'm alive I want long-term income from dividends and I want the per-share dividends to grow annually to match or exceed inflation. I want my survivors to inherit the income, though paying tax on any capital gains will reduce the share count somewhat. Because I have no a-priori intention of selling the

[Fantome]

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[SargeX]

Hey TT Totally agree with your investment philosophy. It really is each to his own and I always get a kick out of the arrogant people that think total returns is the only proper way to invest. There's a few of us income investors that do very well just making sure we have enough dividend income to pay all our expenses so we never have to sell anythng if we don't want to. This is just

[Larrymartin77]

good points

[Larrymartin77]

[MHarley2]

[SourJoe9]

[SourJoe9]

[GassXX]

good points

[silkos]

Gass, Thank you for sharing. Very deep thinking. The SH forum thanks you for your service.  You made the ignore list. Bye Bye time waster.

[GassXX]

good points

[Larrymartin77]

[SourJoe9]

[Marner16]

TT: I can't disagree with your investment goals because they are your investment goals. I have a suggestion that may enhance your income without changing your underlying ENB investment if you haven't investigated it already. As an alternative to ENB which currently yields 6.66%, you might want to check out ENS.TO (E Split Corp.) which currently yields 10.89% The Split shares have their

[TickerTwit]

I'm aware of ENS and gave it some lengthy thought not long ago. The split-corps can be very rewarding if you catch the underlying market at a good time; my son and I have used them to 'speed things up' now and then. This sounds ghoulish, but COVID was an opportunity to buy into certain split-corps at sizable discounts on NAV. Rather than ENS (which I think has done well), we chose

[NPCexe]

Which one is that, TT?

[cttglvr]

As a retiree looking for income I hold ENS as well as Enbridge. Investors may want to check out the Middlefield Funds page as it gives a fairly recent ENS NAV. Today it shows a NAV of $13.90 as of July 5. One thing I've noticed is that while ENS usually trades at a premium to NAV if it gets too high Middlefield issues another $50 million or so in shares substantially below the current share

[WalterWhy]

I hold both ENB and ENS, and was a little miffed that they did this as well.  If memory services me correctly, ENS price was at $14.50 and they priced it at $13.50 and took away the premium overnight. It's because of this that I haven't bought any on the recent run-up:  like you, I'm expecting Middlefield greed to knock the price down to or below $13.50 and can acquire ENS

[splitbolt1]

who cares