The company believes that it can grow its distributable cash flow per share at a 5% to 7% annual rate through 2022. This feature is only available for Premium Members, please sign up for. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. Fundamental company data provided by Morningstar, updated daily. This would imply a sustainable payout ratio of approximately 70%. Note: Enbridge's dividend is paid in Canadian dollars, so the U.S. dollar value of the dividend fluctuates with exchange rates. Next dividend payment date Mar 1, 2021 ENB dividend dates. While the prospects for oil look bleak right now, it is not as if the commodity is going to disappear from our lives overnight. Sorry. ENB dividend payout ratio Enbridge Inc paid out 434.4% of its net income over the trailing twelve months. During the past 10 years, the average Dividends Per Share Growth Rate was 15.50% per year. Its full-year distributable cash flow guidance per share remains unchanged at $4.5-$4.8, indicating a payout ratio of less than 70%. Its financial strength is evident in its current and quick ratios, which are … The dividend payout ratio of Enbridge Inc is 3.30, which seems too high. A stock’s dividend reliability is determined by a healthy payout ratio that is higher than other stocks. Here’s why I think the stock presents a tremendous buying opportunity. Only PremiumPlus Member can access this feature. ... Dividend & Buy Back Current Vs Industry Vs History ; Dividend Yield % 7.3 : Dividend Payout Ratio 3.3 : 3-Year Dividend Growth Rate 11.7 : Forward Dividend Yield % 7.84 : 5-Year Yield-on-Cost % 14.81 : 3-Year Average Share Buyback Ratio The reason ENB’s yield is so high is because its dividend payout is increasing, while its share price falls. Returns since inception, October 2013. Enbridge offers a unique value proposition that brings together a combination of transparent growth, a reliable, low-risk business model and significant dividend income. Retained earnings-334.40%. The dividend payout ratio of Enbridge Inc is 3.29, which seems too high. When you’ve got a stock falling while its dividend rises, its yield is likely to increase a lot. During the past 13 years, the highest Trailing Annual Dividend Yield of Enbridge was 8.84%. During the past 13 years, the highest Dividend Payout Ratio of Enbridge was 2.29. This is quite a high payout ratio that suggests the dividend is not well covered by earnings. In December 2019, we announced a 9.8% increase to our dividend per share, increasing the quarterly dividend to $0.810. Based on the midpoint of its 2020 DCF guidance, its payout ratio for the year would be around 70% -- only slightly higher than its target. While oil is still the company’s base play, Enbridge has invested over $8 billion into renewable projects and now has a net generation capacity of 1.8 GW. After accounting for its dividend yield, total annual returns might be close to 45%. months ended in Sep. 2020 was 1.65. All numbers are in their local exchange's currency. Please read the Privacy Statement and Terms of Service for more information. ENB earnings are insufficient to cover ENB's dividend payouts. A company that pays out close to half its earnings as dividends and retains the other half of earnings has ample room to grow its business and pay out more dividends in the future. Enbridge’s distributable cash flow per share was $4.5 in 2019. GuruFocus has detected 3 Severe Warning Signs with ENB. Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. The lowest was 0.68. The company targets a payout ratio of below 65% of its distributable cash flows in the long term. For most investors this would be cause for concern, however it’s important for a company like Enbridge that we look at both the free and operating cash flow payout ratios. Warning Sign: If a company dividend payout ratio is too high, its dividend may not be sustainable. Enbridge Inc stock rating and analysis - : a summary of key financial strength and profitability metrics. Aditya Raghunath | October 6, 2020 | More on: ENB ENB. Payout Ratio: --PE Ratio: 44.4. Please enter Portfolio Name for new portfolio. Simply click the link below to grab your free copy and discover all 5 of these stocks now. Warning Sign: If a company dividend payout ratio is too high, its dividend may not be sustainable. On top of that, the yield is super high (7-9%), both payout and cash payout ratios are hectic; going from negative value to over 100%. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The lowest was 0.50% per year. So right now Enbridge’s dividend looks safe and secure. All Rights Reserved. Dividend payout ratio measures the percentage of the company's earnings paid out as dividends. Enbridge has paid dividends for over 65 years to its shareholders. At the same time, its stock fell 25%. In dividends investing, Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. Enbridge raises dividend 10% to $0.81 quarterly: 2018-12-12: ENB: Enbridge raises dividend 10% to $0.738 quarterly: 2017-11-30: ENB: Enbridge raises dividend 10% to $0.671 quarterly: 2017-01-06: ENB: Enbridge raises dividend 10% to $0.583 quarterly: 2015-12-04: ENB: Enbridge raises dividend 14% to … With a cash payout ratio of 170%, Enbridge’s dividend payments are poorly covered by cash flow. As of today (2020-12-19), the Dividend Yield % of Enbridge is 7.42%. Paying out such a high percentage of cash flow suggests that the dividend was funded from either cash at bank or by borrowing, neither of which is desirable over the long term. Enbridge's dividend payout ratio for the months ended in Sep. 2020 was 1.65. Frequency: Quarterly When it comes to generating electricity, natural gas is emerging as a good substitute for coal and the trend is picking up across the world. And the median was 10.90% per year. The fact that Enbridge’s management expects the company to earn between $4.50 and $4.80 per share of distributable cash flow is extremely attractive. Click here to check it out. 3 of the Best Dividend Stocks to Make Fast Money, distributable cash flow guidance per share. The company also increased its quarterly dividend by 3% to CAD 0.835, a 7.6% yield on an annual basis. ... Enbridge Inc - FXDFR PRF PERPETUAL USD 25 - Ser 1 Dividend policy None Price as of: DEC 14, 06:29 AM EDT $18.01 +0.12 +0.67% Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Even if the continent reduces dependency on oil, plenty of countries around the world are still dependent on it. Enbridge’s forward dividend yield is a tasty 8.4% right now. Enbridge also has a growing portfolio of renewable assets. 5 Stocks Under $49 (FREE REPORT). And the median was 3.17%. The company guidance indicates that it will grow its dividend yield by around 4% over the next couple of years. The Motley Fool owns shares of and recommends Enbridge. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. Enbridge's Dividends per Share for the Not to alarm you, but you’re about to miss an important event. Enbridge's dividend payout ratio for the On a trailing 12 month basis, Enbridge is currently paying out 126% of earnings. In the long term, management is targeting a dividend payout ratio of around 65% of the company’s distributable cash flow. Over the past 25 years, the dividend has grown at an average compound annual growth rate of 11%. In 2020, Enbridge raised its dividend by 9.8%. This translates into $3.24 dividend per share on an annualized basis for 2020. Enbridge is set to benefit from a growing demand for power and is strategically positioned to capitalize on strong energy fundamentals over the long term. Last Close Price: $34.10. Dividend.com: The #1 Source For Dividend Investing. Enbridge's dividend payout ratio for the months ended in Sep. 2020 was 1.65. 434.40%. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. The world depends on oil and natural gas for everything from planes to shipping containers to cars. Cannabis 2.0: Is Cannabis Set to Comeback in 2021? The company already supplies natural gas to over 170 million customers in North America. Stock quotes provided by InterActive Data. Enbridge has strong fundamentals, is diversifying, and has the capacity to pay out regular dividends. Float Percentage Of Total Shares Outstanding, Accounts Payable & Accrued Expense for Financial Companies, Accumulated other comprehensive income (loss), Cash, Cash Equivalents, Marketable Securities, Long-Term Debt & Capital Lease Obligation, Other Liabilities for Insurance Companies, Short-Term Debt & Capital Lease Obligation, Cash From Discontinued Investing Activities, Cash Payments for Deposits by Banks and Customers, Cash Receipts from Deposits by Banks and Customers, Cash Receipts from Securities Related Activities, Other Cash Payments from Operating Activities, Other Cash Receipts from Operating Activities, Payments to Suppliers for Goods and Services, Earn affiliate commissions by embedding GuruFocus Charts. Payout ratio. Dividend. If a company dividend payout ratio is too high, its dividend may not be sustainable. You can manage your stock email alerts here. Speaking of undervalued dividend stocks.... 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