December 10, 2018

Enbride Inc (ENB)

Enbride Inc (ENB) is a global leader is the field of energy transportation.  They are currently operating the longest, and self-proclaimed “most sophisticated” crude oil transportation system in the world.  While maintaining their market share in the oil market, the company is expanding into the transportation of natural gas, and has a developing renewable energy program that includes advances in the fields of wind and solar energy, as well as hybrid fuel cells.  Enbridge’s headquarters are located in Calgary, Alberta, and they employ about 6,000 workers across North America.  They have been recognized as one of the Global 100 Most Sustainable Corporations in the World, and one of the 100 top employers to work for in Canada.  The company’s vision is, “To be the leading energy delivery company in North America.  We deliver energy and we deliver value to shareholders.”  I like the simplicity of that concept.  Any company that keeps its eyes focused on leading in their field and rewarding their shareholders is very attractive to dividend investors.

 

oilThe most recent news about Enbridge is their plans to acquire Tonbridge Power Inc. (TBZ) for 54 cents per share.  This brings the total price tag to about $20 million, and is the first time Enbridge (ENB) has entered into the electricity transmission market.  The project is also noteworthy because the transmission line would run internationally between Canada and the USA.  It would take over what Tonbridge had labelled the, “Montana Alberta Tie Line.”  The line will link Great Falls, Montana with Lethbridge, Alberta, using a 345 km line.  The $20 million acquisition price tag is only the beginning of the company’s projected expenses for the transmission line however.  Enbridge will take over the $50 million in debt on Tonbridge’s balance sheet, and will inject another $250 million into the project in order to bring it to its 600 megawatt full potential.  While this is obviously a substantial investment, Enbridge (ENB) can afford to invest some capital at the moment as their second-quarter profits nearly doubled those of last year.  They recently reported earning $259 million ($.35 cents a share), up from 138 million ($.19 cents a share).  The Alberta Oilsands continue to be the lifeblood of the company, and they show little signs of slowing production.

 

Enbridge is currently trading at around $30 per share.  With people rushing to Canadian oil companies as a safe haven, Enbridge (ENB) is definitely not trading at a discount.  Even with their substantial quarterly earnings, they still have a price-to-earnings ratio of almost 23.  Their annual divided is just under a dollar at 98 cents right now, and consequently the dividend ratio is 3.2%.  With the USA needing the Oilsands more and more, there is probably not a better stable dividend supplier than Enbridge right now.  While you may be able to get better yields else where, this company has solid growth prospects, as well as the maturity needed to pay a substantial dividend.  This combination makes it a leading recommendation among Canadian dividend experts.

 

Enbride Inc (ENB) Dividend Stock Graph:

ENB

Enbride Inc (ENB) Dividend Stock Metrics:

TickerNamePriceDividend YieldPayout RatioDEBT_TO_MKT_CAPDividend Growth 5 yearsDividend Growth 1 years
ENBEnbridge Inc60.543.2467.290.7010.4715.09

 

 

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