Enbridge $ENB, build a passive income machine ⛽️
Stockchase
James Telfser, June 3, 2020
ENB vs TRP? He believes having one of these holdings is key to your portfolio. It is getting harder to put pipe in the ground, so existing assets are valuable. He owns ENB, due to the amount of oil they move and the pricing power they have with tolls.
Robert McWhirter, May 29, 2020
Payout ratio of 65%. Very attractive compared to bonds. A reasonable investment opportunity. The dividend appears to be safe. Yield 7.3%
BUY
The motley Fool
$1,000 in This Stock Will Create a Passive Income Machine
As mentioned, $1,000 in Enbridge stock today will generate a 7.6% annual dividend. That equates to $76 per year. But let’s assume you reinvest those earnings and add an additional $1,000 each year. After 40 years, you’ll have $250,000. At the current dividend rate, that’ll produce a passive income stream of nearly $20,000 every year.
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The balance sheet has been deteriorating in some aspects as of late and the payout ratio stands at a whopping 308.57%.
Overall, it doesn’t look like Enbridge is in a great position to cover its dividend with cash flow going forward.
Perhaps some investors will deem Enbridge’s 7.29% yield worth the risk, but for the standard buy-and-hold investor, it may not be a prudent move given the availability of other alternatives.
callmecrude, May 23, 2020
Before covid started there was predictions of them hitting ATH or at least getting back to the $60 range by the end of 2020. The completion of Line 3 would double their supply capacity and all lights were green for the US side of the pipeline to be finished as well.
Now with oil in shambles I think they can go up a bit from where they currently are but definitely not meeting projections anytime in the next few years. I’m holding both them and pembina for the dividend play though. And certainly longer term of 5-10 years I think they’ll do well.
AAfloor, May 24, 2020
Oil is still the most important commodity to this civilization and the need to heat your home did not suddenly disappear.
ENB basically collects a toll for moving liquids/gas through their network, and the growth/Bat Flu rebound is just a bonus.
Line 3 will be completed, the Democrats have never fielded a weaker candidate, the poor old man can't even change his own diaper.
wagon13, May 23, 2020
Sometimes you choose between potential growth and likely dividends.
I like value and dividend paying stocks.
I chose Pembina a month or so ago but it was a coin flip and based off relative value I perceived. I'd be happy with both but try to have enough to drip and not enough cash to hold enough of both.
Not-A-Robot-Boop, May 23, 2020
I'm pretty green when it comes to this but I dont understand why people buy Enbridge for the dividends?
Last I checked they're payout ratio for their dividends in greater than 100%. Its unsustainable. So why invest in it for the dividends when they should theoretically be cutting them
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