The midstream industry is one that enjoys numerous competitive advantages for several reasons. The efforts put Enbridge in a position of strength heading into the pandemic. But regardless of where the dividend ranks on the company’s priority list, it’s likely a matter of time before the payouts are either cut or suspended entirely. Canada Revenue Agency: Do You Need to Repay CERB Money? This led to reduced crude oil demand. That has an impact on revenue. Enbridge Inc. (ENB.TO) pays an annual dividend of C$3.17 per share, with a dividend yield of 7.47%. Please read the Privacy Statement and Terms of Service for more information. Putting your money into them today could lead to significant losses in the weeks and months ahead. 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 has $11 billion in secured capital projects on the go and has $14 billion in available liquidity. Canada Revenue Agency: Do You Need to Repay CERB Money? Refineries turn crude oil into these products. The Motley Fool owns shares of and recommends Enbridge. In December 2019, we announced a 9.8% increase to our dividend per share, increasing the quarterly dividend to $0.810. READ MORE. 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. The massive decline in fuel usage forced refineries to cut production. This translates into $3.24 dividend per share on an annualized basis for 2020. This provides a hedge against the weakness on the oil pipeline side. The payout should be safe, given the DCF outlook and the decent growth portfolio. I don’t forecast any dividend cut at this point. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. Oil and gas stocks were risky investments even before the pandemic hit. CALGARY -- Enbridge Inc. is raising its dividend by nearly 10 per cent. Not to alarm you, but you’re about to miss an important event. If it’s going to announce a dividend suspension or cut, it’s likely going to happen this coming week. Is it safe? First, it’s highly capital intensive, with major projects often costing billions of dollars to complete. High dividend yields (usually over 10%) should be considered extremely risky, while low dividend yields (1% or less) are simply not very beneficial to long-term investors. Oil and gas is as risky as it’s ever been, and investors should keep those stocks out of their portfolios. Current as of December 18, 2020. Simply click the link below to grab your free copy and discover all 5 of these stocks now. 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% to $0.7380; 9.4% Yield It has raised its dividend every year since 1996. 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. And that should come as no surprise given that the COVID-19 pandemic is keeping many people from traveling, and low oil prices are making things even worse for oil and gas companies. This is more than triple the S&P 500’s average of ~1.9%, which seems to make it a good option for those seeking a high yield stock for income. At the time of writing, Enbridge stock trades at $36.25 per share and provides a dividend yield of 9%. The longer the pandemic drags on, the more of a strain it’ll put on the finances of oil and gas stocks like Enbridge. Enbridge (TSX:ENB)(NYSE:ENB) is paying a dividend yield of around 8%, but investors shouldn't expect it to last. The current quarterly dividend is CA$0.81 per share, or CA$3.24 per year. The Q3 results will show how the situation has evolved and where the company sees things heading in the coming months. Even in a worst-case scenario, it seems likely that Enbridge's dividend would merely grow slower than expected but wouldn't be at high risk of a cut. How can Enbridge (NYSE:ENB) sustain its dividend payment? The efforts put Enbridge in a position of strength heading into the pandemic. 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. © 2020 The Motley Fool Canada, ULC. 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. I understand I can unsubscribe from these updates at any time. DCF should rise by 5-7% annually through 2022. I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. Given Enbridge’s efforts to avoid laying off staff during these troubled times, it’s possible that the company will opt to reduce its payouts first before letting go of staff. In the meantime, you get paid a great dividend to wait for the recovery. That’s the feeling I get with Enbridge (TSX:ENB)(NYSE:ENB). This represents a $3.34 dividend on an annualized basis and a dividend yield of 7.85%. Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share. In the Q2 2020 earnings report, Enbridge said throughput on the oil pipelines fell and was expected to remain under pressure through the third quarter. © 2020 The Motley Fool Canada, ULC. This is your chance to get in early on what could prove to be very special investment advice. The problem for Enbridge is the cause and effect of two issues: As long as the pandemic’s around, many people will avoid traveling, which will keep demand for oil down. The Motley Fool Canada » Dividend Stocks » Is a Dividend Cut Coming for Enbridge (TSX:ENB) Stock? Here's why Enbridge Inc (TSE:ENB) might cut its dividend payment 5th Jun by Ben Hobson Dividend cuts are typically bad news for shareholders - so anticipating them ahead of time can reduce risk and help improve portfolio performance. Returns since inception, October 2013. I don’t suspect management is going to want to end that impressive streak. Please read the Privacy Statement and Terms of Service for more information. The company has proven it can pay its dividend and increase it. Investors are better off investing in safer, more sustainable dividend stocks that are in better shape right now. Just Released! Shares of master limited partnership Enbridge Energy Partners ... Enbridge Climbs as Strategic Review Ends with 40% Dividend Cut. The reason for the drop in the price of oil, however, causes concern. Enbridge also streamlined the corporate structure through the purchase of four subsidiaries. All the latest breaking news on American People News. Enbridge has paid dividends for over 65 years to its shareholders. 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. ENB's next quarterly dividend payment will be made to shareholders of record on Monday, March 1. At the time of writing, Enbridge stock trades at $36.25 per share and provides a dividend yield of 9%. Returns since inception, October 2013. The company has thus far avoided taking more drastic measures, such as laying off staff. The post Is a Dividend Cut Coming for … August is the time when investors might expect to see the company make an announcement related to its dividend. Enbridge (TSX:ENB)(NYSE:ENB) is paying a dividend yield of around 8%, but investors shouldn't expect it to last. Its executives also took pay cuts, and Enbridge was also reducing the base pay for its non-union employees. Enbridge valuation The shares will have a yield of about 6.3 per cent, based on Enbridge's closing share price on Monday. Enbridge’s forward dividend is now $3.24 CAD ($2.43 USD) giving a dividend yield of about 6.0%. The other moat creating advantage is the highly regulated nature of the business. The company doesn’t produce crude oil; it simply moves oil from the drillers or oil sands miners to their customers. 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. Once COVID vaccines become widely available, airlines should see restrictions lifted and people will start to commute. This is your chance to get in early on what could prove to be very special investment advice. Current as of December 18, 2020. Shares of master limited partnership Enbridge … While these are fairly modest moves, they’re an indication that things may not be going so well for Enbridge. 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 flag for further investigation. Andrew Walker | October 30, 2020 | More on: ENB ENB. This is a question I've received many times. Fool contributor Andrew Walker owns shares of Enbridge. Enbridge moves about a quarter of the oil produced in Canada and the United States, so the demand drop can hurt the company’s financial results. All rights reserved. I understand I can unsubscribe from these updates at any time. 5 Stocks Under $49 (FREE REPORT). The shares traded above $57 earlier this year, so the upside potential is significant. Despite the challenging times, distributable cash flow (DCF) in Q2 2020 actually rose compared to the same quarter last year. 2 years ago-A)(NYSE: RDS-B) has one of the highest-yielding dividends among oil … Not to alarm you, but you’re about to miss an important event. In short, investors shouldn’t expect oil and gas stocks to recover until COVID-19’s no longer posing a threat to the global economy, and that could be a while. Enbridge’s dividend of around 8% may look appealing to income investors, but it’s important to remember that payouts aren’t guaranteed; the company can decide tomorrow that it needs to make a change. Shares are down roughly 20% since the start of the year, and nearly 30% from early-year highs. Enbridge took advantage of strong debt markets in Q2 to raise $6.9 billion in capital at attractive rates. Ongoing volatility is expected, but Enbridge stock appears oversold today. However, recent moves announced by the company suggest that management is looking for ways to cut costs, which could mean a possible dividend … All rights reserved. See our latest analysis for Enbridge . Enbridge Dividend and Safety. Passive Income: 3 Stocks That Have Raised Dividends for Over 25 Years. In the Q2 earnings release, Enbridge said it still expects to meet its DCF guidance for 2020. Is it safe? 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. 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. This topped up the company’s growth capital needs for 2020 and means Enbridge won’t have to raise capital again until 2022. Income investors with an eye for value wonder of Enbridge stock is simply too cheap to ignore at the current price. They see a high payout ratio and assume the dividend is close to being cut. Don't miss out! Its main distribution system normally runs near capacity, but the drop in demand by refineries resulted in lower throughput in recent months. Passive Income: 3 Stocks That Have Raised Dividends for Over 25 Years. The pandemic forced global shutdowns of businesses and airlines at an unprecedented level. While it’s certainly possible that the company continues to hold off on making any drastic move on its dividend, that doesn’t mean it’s safe. Browse The Independent's complete collection of articles and commentary on American People News. Enbridge (TSX:ENB)(NYSE:ENB) now trades close to its 2020 low. Canada's Enbridge has had a pretty rough year so far. Oil and gas stocks have been cutting or suspending their dividends left and right over the past few weeks. One stock that’s been quiet about its dividend has been Enbridge Inc (TSX:ENB)(NYSE:ENB). 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. That comes out to $2.26 in U.S. dollars and equals an impressive 8.8% yield. Dividend Reliability A stock’s dividend reliability is determined by a healthy payout ratio that is higher than other stocks. 5 Stocks Under $49 (FREE REPORT). Per share, increasing the quarterly dividend payment stock trades at $ 36.25 per share and provides a dividend year! 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