Enbridge has increased its dividend payout even as the pandemic caused other companies to cut or entirely suspend dividends. The Dividend Guy. Looking at the universe of stocks we cover at Dividend Channel, on 2/13/20, Enbridge Inc (Symbol: ENB) will trade ex-dividend, for its quarterly dividend of $0.81, payable on 3/1/20. (NYSE:ENB) Seeking Alpha - The Dividend Guy. A look at Enbridge Inc (TSE:ENB)’s dividend cover. A dividend cut will come and the stock will tank. By comparison for example, the Canadian banks roughly have a 50% payout ratio which is very sustainable going forward. Enbridge is a pipeline company and pipelines are the cheapest way to move energy. Should you pursue your analysis, this video will bring you more insights. The Calgary-based company owns and operates pipelines in the U.S. and Canada. Recommended for you. Dividend.com: The #1 Source For Dividend Investing. ENB's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! As one of the largest pipeline companies, Enbridge probably has a wide moat due to its scale and network. The longer the pandemic drags on, the more of a strain it’ll put on the finances of oil and gas stocks like Enbridge. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. But some companies will continue to pay their dividends throughout the crisis. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. ENB's next quarterly dividend payment will be made to shareholders of record on Monday, March 1. Show full articles without "Continue Reading" button for {0} hours. CALGARY -- Enbridge Inc. raised its dividend as it released its latest financial guidance. The 25-year mark is especially significant to dividend investors, as that’s when stocks are considered to be Dividend Aristocrats. Your email address will not be published. How can Enbridge (NYSE:ENB) sustain its dividend payment? Check out our latest analysis for Enbridge . ENB's next quarterly dividend payment will be made to shareholders of record on Monday, March 1. If it’s going to announce a dividend suspension or cut, it’s likely going to happen this coming week. We credit this unique value proposition for delivering excellent returns to shareholders year after … That’s a concern for Enbridge investors, as it pushes more pressure on the possibility that a dividend cut may be inevitable. Enbridge avoids layoffs, but… On June 17, Enbridge announced that close to 800 employees took leaves of absence, moved to part-time, or accepted early retirement packages. The first payment at the new rate will be payable on March 1, 2021, to shareholders of record on Feb. 12, 2021. Buying Exxon Mobil Could Be Like Buying Banks In 2009 (NYSE:XOM) Logan Kane Dec. 08, 2020 9:43 AM ET. This represents a $3.34 dividend on an annualized basis and a dividend yield of 7.88%. We are the #1 Source for Dividend Stocks. The pandemic forced many companies to cut dividends. They see a high payout ratio and assume the dividend is close to being cut. We should also look at the company’s dividend history. Log in. Furthermore, if you’re not willing to accept the fact that although unlikely, a dividend cut would inevitably cause significant losses in capital due … 2 weeks About Enbridge: Should You Fear A Dividend Cut? Canada's Enbridge has had a pretty rough year so far. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. There are lots of financial indicators that can help us evaluate the sustainability of a company’s dividend. Enbridge’s dividend has normally been over 5%, and so it’s normally been a high-paying dividend stock. Payout Estimate. Will Enbridge’s dividend be cut? 2. A dividend cut … That comes out to $2.26 in U.S. dollars and equals an impressive 8.8% yield. That’s a concern for Enbridge investors, as it pushes more pressure on the possibility that a dividend cut may be inevitable. A stock’s Dividend Uptrend rating is dependent on the company’s price-to-earnings (P/E) ratio to evaluate whether or not a stock’s dividend is likely to trend upward. New Russian weapons add to simmering tensions over a lingering territorial dispute in Asia. Enbridge's stock price has reflected that fear of a dividend cut. There’s nothing better to an income investor than the sight of dividends rolling into your account. Here's why Enbridge Inc (TSE:ENB) might cut its dividend payment. That marks 25 consecutive years of dividend increases — a feat that immediately vaults Enbridge into the elite dividend-growth stocks in Canada. The payout should be safe, given the DCF outlook and the decent growth portfolio. On an annual basis, that yields more than 8% per year. Compare. The ex-dividend date is Thursday, February 11th. Enbridge has increased its annual dividend each year since 1995. The post Dividend Investors: Will Enbridge (TSX:ENB) Suspend its Payouts? Currently, Enbridge pays investors a quarterly dividend of … Enbridge has paid a dividend every year for 65 years. Review ENB (XNYS) dividend yield and history, to decide if ENB is the best investment for you. Stocks. It would be disappointing for the company to have just reached that milestone and only months later have to suspend or reduce the dividend. In fact, there are plenty of high-yield stocks that have cut their payouts before. The oil and gas giant has its annual shareholders meeting on May 5 and it will discuss its first-quarter results of 2020 on May 7. The last nail in the coffin was … But Enbridge managed to get through that period without having to resort to a dividend cut. The oil and gas giant has its annual shareholders meeting on May 5 and it will discuss its first-quarter results of 2020 on May 7. Shares are down roughly 20% since the start of the year, and nearly 30% from early-year highs. Enbridge Inc. (ENB.TO) pays an annual dividend of C$3.17 per share, with a dividend yield of 7.47%. ... Enbridge Inc. Dividend policy Increase Price as of: DEC 15, 11:10 AM EDT $33.71 +0.36 +1.08% ENB: NYSE (Stock) Enbridge Inc. Dividend policy Increase Price as of: DEC 15, 11:10 AM EDT $33.71 +0.36 +1.08% Watchlist Overview. The dividend, which yields 7.8%, is on stable footing and is more likely to be hiked that cut, given the shareholder-friendly nature of management and potential medium-term catalysts that could further improve its operating cash flow stream. Enbridge has paid dividends for over 65 years to its shareholders. But that does not mean income investors have to settle for a low return. That’s well above the $3.7 billion that it had in free cash flow. That makes a dividend cut all the more likely to happen — the only question at this point is when. Even if it does reduce or suspend its dividend payments, it may not be for the long term. Reply. which shouldn’t come as much of a surprise to investors, A Weak Canadian Dollar Could Make These 3 Stocks Skyrocket, Why Enbridge Stock Price Lagged the TSX by 1.7% in March, TSX Stocks: 2 Canadian Heavyweights Yielding 8%. The longer the pandemic drags on, the more of a strain it’ll put on the finances of oil and gas stocks like Enbridge. The pipeline company says it will start paying a quarterly dividend of 81 cents, effective March 1, up from its previous rate of 73.8 cents. Enbridge Inc’s net gearing ratio is 98.5% - above the 50% threshold. This article is exclusive for subscribers. If there’s no improvement and no reason to be optimistic, it may only be a matter of time before the company decides to cut or suspend its payouts. Enbridge has increased its annual dividend each year since 1995. Enbridge’s Competitive Advantages, Risks, and Moat. Enbridge (ENB) Declares $0.81 Quarterly Dividend; 10.5% Yield Enbridge (ENB) Declares $0.7380 Quarterly Dividend; 7.8% Yield Enbridge (ENB) Raises Quarterly Dividend 10% … In December 2019, we announced a 9.8% increase to our dividend per share, increasing the quarterly dividend to $0.810. Conserving cash is more important than ever before. See our latest analysis for Enbridge . For every dollar they take in they pay out 1.24$. It is computed by dividing earnings per share divided by dividend per share (EPS/DPS) and, generally speaking, dividend cover of less than 1.5x earnings should be a … Currently, Enbridge pays investors a quarterly dividend of $0.81. The cost and regulatory hurdles that need to be overcome for a new competitor are substantial. Enbridge (NYSE: ENB) should be one of those companies. Enbridge stock has been a solid wealth creator. Thereafter the information depicts dividends declared by ENF. While Enbridge might be a solid choice for risk-taking dividend investors, a stock like BMO offers a more reliable investment. The good news is that Enbridge is still a solid long-term investment. I suspect they are doing this so Investors won’t jump ship but this is not sustainable right? Enbridge (NYSE:ENB) declares CAD 0.835/share quarterly dividend, 3.1% increase from prior dividend of CAD 0.810.Forward yield 7.84%Payable March 1; for shareholders of record Feb. However, recent moves announced by the company suggest that management is looking for ways to cut costs, which could mean a possible dividend cut could be on the horizon. Will Enbridge’s dividend be cut? If Enbridge increases its dividend per share in the first quarter of 2021, the stock could see a significant jump. The risk of Enbridge cutting its dividend in the long run is extremely low. The current quarterly dividend is CA$0.81 per share, or CA$3.24 per year. I dove deeply into Enbridge’s dividend sustainability in the video below. Low oil prices combined with the coronavirus pandemic have sent many stocks in the industry into a tailspin. Dividend Investors: Will Enbridge (TSX:ENB) Suspend its Payouts? A sustained distribution/dividend that has never been cut; Dividend/Distribution History. A rate cut is a plus for dividend payers because lower yields on so-called “safe” investments, like Treasuries, drive more buyers to dividend stocks. Unsubscribe at any time. An analysis of Enbridge’s dividend must go a little deeper than just the numbers. The cost and regulatory hurdles that need to be overcome for a new competitor are substantial. The portion that was not designated as an “eligible dividend” under Canadian tax rules is $0.180382 per share. Today I will take a closer look at one of my newest non-REIT investments, Enbridge , an Ultra SWAN (sleep well at night) dividend champion offering … 11/24/2017 10:07 am […] – These could potentially be strong, dominant pipeline companies. Canada's Enbridge has had a pretty rough year so far. A safe healthy company that can keep raising dividends for years has a payout ratio of 75% or less. Enbridge Inc. (ENB.TO) pays out 330.00% of its earnings out as a dividend. It’s going to attract a lot of attention from investors the longer the industry struggles. Dividend cover is perhaps the most widely interpreted dividend health metric. Investors appear to assume the worst when any news about the company is announced. 14 mins 5 Stocks to Watch as Bitcoin Soars Past $20,000 Timothy Sykes 15 mins Is Coca-Cola Stock a Buy? It is computed by dividing earnings per share divided by dividend per share (EPS/DPS) and, generally speaking, dividend cover of less than 1.5x earnings should be a … After reviewing financial statements, recent news and stories as well as Enbridge’s business model and my investment thesis, I will keep my shares and expect a dividend increase in 2021. It has raised its dividend every year since 1996. Is Enbridge the next to suspend or cut its dividend? Looking at the universe of stocks we cover at Dividend Channel, on 8/13/20, Enbridge Inc (Symbol: ENB) will trade ex-dividend, for its quarterly dividend of $0.81, payable on 9/1/20. A safe level of net gearing (net debt to equity) on the balance sheet is generally considered to be 50 percent or less. With a high yield and a poor outlook for the industry, it was likely an unavoidable decision for the company. A look at Enbridge Inc (TSE:ENB)’s dividend cover. Oil and gas stocks have been cutting or suspending their dividends left and right over the past few weeks. Final Thought After reviewing financial statements, recent news and stories as well as Enbridge’s business model and my investment thesis, I will keep my shares and expect a dividend increase in 2021. I recently wrote about why ENB is a good buy right now for long term investors looking for income. It’s not a great reason to decide to keep the dividend intact. CALGARY -- Enbridge Inc. is raising its dividend by nearly 10 per cent. For further details on this – and to find out the name of the single most tax-efficient account to hold your US stocks in! An unusually high payout ratio of 305% of its profit suggests something is happening other than the usual distribution of profits to shareholders. Dividends Enbridge Inc. (ENB.TO) (TSE:ENB) Dividend Information. Enbridge Inc. (ENB.TO) pays an annual dividend of C$3.17 per share, with a dividend yield of 7.47%. Find the latest dividend history for Enbridge Inc Common Stock (ENB) at Nasdaq.com. Two-thirds of Canada’s oil and 20% of the United States’ natural gas travel through Enbridge’s pipelines. Find the latest dividend history for Enbridge Inc Common Stock (ENB) at Nasdaq.com. But at over 8%, it’s glaring. Eventually, the company was not able to issue new debt and the dividend was cut. Is it safe? Alternative Investment Ideas when Stocks are too Expensive. Why the company may consider adjusting its dividend policy. If it’s going to announce a dividend suspension or cut, it’s likely going to happen this coming week. When Enbridge announced it was increasing its dividend payments in December, it marked the 25th year in a row that the company hiked its dividend payments. I don’t suspect management is going to want to end that impressive streak. Shares are down roughly 20% since the start of the year, and nearly 30% from early-year highs. Many dividend stocks have been cut or suspended — one of the latest being Inter Pipeline, which shouldn’t come as much of a surprise to investors. Looking at the universe of stocks we cover at Dividend Channel, on 2/13/20, Enbridge Inc (Symbol: ENB) will trade ex-dividend, for its quarterly dividend of $0.81, payable on 3/1/20. About Enbridge: Should You Fear A Dividend Cut? See our latest analysis for Enbridge . August is the time when investors might expect to see the company make an announcement related to its dividend. Oil and gas stocks have been cutting or suspending their dividends left and right over the past few weeks. The information shown above includes distributions declared by the Fund up to and including 2010. Eventually, the company was not able to issue new debt and the dividend was cut. appeared first on The Motley Fool Canada. About Enbridge: Should You Fear A Dividend Cut? Enbridge Inc. (ENB.TO) pays out 330.00% of its earnings out as a dividend. Dec. 4, 2020 5:58 AM ET | | About: Enbridge Inc. (ENB) by: The Dividend Guy. CALGARY -- Enbridge Inc. is raising its dividend by nearly 10 per cent. With the pandemic’s end in sight and progress with recent projects, Enbridge offers a stellar risk/reward. A cash dividend payment of $0.603 per share is scheduled to be paid on September 01, 2020. Enbridge offers a unique value proposition that brings together a combination of transparent growth, a reliable, low-risk business model and significant dividend income. Thoughts ? For unhealthy companies, the virus will be the excuse to cut. And given the challenging socioeconomic environment we are in now, going after high dividend yields can seem quite risky. I am thinking of bailing ASAP what do you think? Final Thought. Enbridge Inc. (ENB.TO) announced a quarterly dividend on Tuesday, December 8th. Enbridge (NYSE:ENB) declares CAD 0.835/share quarterly dividend, 3.1% increase from prior dividend of CAD 0.810.Forward yield 7.84%Payable March 1; for shareholders of record Feb. But given the risk that exists in the industry today, dividend investors may be better off looking for more stable investments where commodity prices won’t heavily impact their investments or dividend income. Now read: About Enbridge: Should You Fear A Dividend Cut? Why the company may consider adjusting its dividend policy. 5th Jun by Ben Hobson. As one of the largest pipeline companies, Enbridge probably has a wide moat due to its scale and network. Thanks Is Enbridge (TSX:ENB)(NYSE:ENB) the next to suspend or cut its dividend? – simply click the link below to grab your free copy of our new report…. An unusually high payout ratio of 327% of its profit suggests something is happening other than the usual distribution of profits to shareholders. Oil and gas stocks have been cutting or suspending their dividends left and right over the past few weeks. The pipeline company says it will increase its quarterly payment to shareholders to 83.5 cents per share, up from 81 cents per share. States are receiving less vaccine than promised. Special ‘Tax Credit’ Stocks Revealed in FREE New Report. Enbridge Inc ENB Morningstar Rating Rating as of Dec 16, 2020. Enbridge valuation But the old saying goes there are two things certain in life – death and taxes… and the latter can result in some of those precious dividends slipping through your fingers and into the taxman’s pocket! Enbridge Inc (ENB) will begin trading ex-dividend on August 13, 2020. Am thinking of buying more bank shares from my enbridge sale. This translates into $3.24 dividend per share on an annualized basis for 2020. An analysis of Enbridge’s dividend must go a little deeper than just the numbers. One stock that’s been quiet about its dividend has been Enbridge Inc (TSX:ENB)(NYSE:ENB). If you’re a dividend investor, especially with holdings in oil and gas, you’re probably a little nervous about whether or not your stocks could be next to cut or suspend its dividend. An analysis of Enbridge’s dividend must go a little deeper than just the numbers. The pipeline company says it will start paying a quarterly dividend of 81 cents, effective March 1, up from its previous rate of 73.8 cents. It would be risky for investors to rely on this dividend given the challenges Enbridge faces today. And the problem is that in 2020, demand for oil likely going to be significantly lower. The shares will have a yield of about 6.3 per cent, based on Enbridge's closing share price on Monday. One stock that’s been quiet about its dividend has been Enbridge Inc (TSX:ENB)(NYSE:ENB). Shareholders of record on Friday, February 12th will be paid a dividend of 0.835 per share on Monday, March 1st. Dividend cuts are typically bad news for shareholders - so anticipating them ahead of time can reduce risk and help improve portfolio performance. If there’s no improvement and no reason … The dividend is safe when you consider ENB's distributable cash flow. If a stock is valued near, or slightly below the market average, research has shown that the market expects the stock’s dividend to increase. On an annual basis, that yields more than 8% per year. We now know why. It has also proven it can … Factors such as rising interest rates, the widening of the heavy oil discount and the Federal Energy Regulatory Commission's proposed tax disallowance have caused investors to retreat from the stock. Enbridge’s payout ratio is 124% !!! We should also look at the company’s dividend history. At this point, Enbridge has increased its dividend annually for a quarter of a century. Currently, Enbridge pays investors a quarterly dividend of $0.81. The company has proven it can pay its dividend and increase it. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. I don’t forecast any dividend cut at this point. The shares will have a yield of about 6.3 per cent, based on Enbridge's closing share price on Monday. Will Enbridge’s dividend be cut? *Exceptions to the above: September 1, 2013 Enbridge Inc. Common Share Dividend: Please note that a portion of the $0.3150 September 1, 2013 Enbridge Inc. Common Share dividend was not designated as an “eligible dividend” pursuant to Subsection 89(14) of the Income Tax Act. A highly leveraged company that struggles to meet its short-term liabilities is more likely to cut its dividend than a well-financed one. At the time of writing, Enbridge stock trades at $36.25 per share and provides a dividend yield of 9%. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Enbridge’s Competitive Advantages, Risks, and Moat. But the fact remains, Enbridge has raised dividends for 2.5 decades and has grown its dividend at a 16% clip annually over the last 5 years. Like us on Facebook to see similar stories. These are some of the best growth streaks and dividend growth rates in the country. Seeking Alpha . Enbridge Inc (NYSE:ENB), for instance, has been a generous yielder for a long time. However, it’s conceivable that it may play a role in the company’s decision-making process. Dividend cover is perhaps the most widely interpreted dividend health metric. And especially given that the dividend is as high as it is, it wouldn’t be unreasonable to reduce it and allow investors to still earn a more modest dividend yield. However, if you take the dividend cut in 2016 and the less-than-promised 5% hike in 2020 into account, those wishing to err on the side of caution will probably still end up preferring Enbridge. In the short term, Enbridge may keep its dividend if only to see how bad things get in the coming months. Enbridge expects these projects to increase cash flow by $2.5 billion which will allow it to keep increasing dividends over the next few years. I hate spam and you should too. We should also look at the company’s dividend history. However, if you take the dividend cut in 2016 and the less-than-promised 5% hike in 2020 into account, those wishing to err on the side of caution will probably still end up preferring Enbridge. Prior to 2011, investors received a taxable distribution directly from the Fund. But did you know that dividends from Canadian-based companies are eligible for special tax credits? In 2019, Enbridge paid out $6.4 billion in dividends during the year. 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