Currently, Enbridge Inc. (NYSE: ENB) is a hold recommendation. The company is a major energy delivery business, with a portfolio of pipelines, renewable energy assets, and natural gas storage facilities across North America.
Enbridge has had a solid year so far, with the stock up nearly 20% since the start of the year, but over the last few weeks, the stock has come under pressure due to weakness in the energy sector and softness in Enbridge’s core markets.
At the same time, Enbridge has continued to expand its presence in renewables, an area where the company believes it can compete long-term, and the company recently announced a plan to invest $58 billion into renewable energy and natural gas infrastructure over the next three years.
Given this move, and the company’s solid financial and capital position, investors should consider making short-term tactical trades with Enbridge (buy or sell), but the long-term outlook is still too uncertain for investors to commit to buy or sell the stock outright.
As such, the company is a hold recommendation for now.
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Is Enbridge a good buy now?
Enbridge Inc. (NYSE: ENB) is a large Canadian energy infrastructure company, and has been a reliable dividend payer for many years. It is a diversified company with exposure to all energy sectors, including gas and oil, renewable energy (wind and solar), and energy transmission.
Given its diverse portfolio of investments, Enbridge is considered a safe investment, making it attractive to income investors. Its shares currently pay a dividend yield of 6. 8%, which is one of the highest yields among large-cap Canadian energy companies.
In addition to its attractive dividend yield, Enbridge also has strong fundamentals. The company has healthy financial metrics, including a manageable debt-to-equity ratio of 56% and a long-term debt to capital ratio of 20.
7%. Furthermore, Enbridge boasts a solid balance sheet with a cash balance of $5. 5 billion, or 14. 5% of its market capitalization.
Looking at the current outlook for the energy sector, it appears that Enbridge is well-positioned to capitalize on any upside potential going forward. The company is focused on investing in assets that have attractive upside potential, and has been actively pursuing growth opportunities in the renewable energy space.
Overall, Enbridge is considered a safe buy at the present time. It has proven to be a reliable dividend payer, boasts solid fundamentals and attractive growth prospects. While there is no guarantee of success, Enbridge is still an attractive option for investors seeking a secure investment with a decent yield and potential for further growth.
What is the forecast for Enbridge stock?
At the time of writing, the forecast for Enbridge stock is positive. Analysts at Thomson Reuters have set a 12-month target price of $47. 38 per share. This is an increase from the company’s current stock price of $41.
84 per share and indicates a potential 11. 3% return for investors.
Enbridge remains a strong and stable company, and analysts see its stock as a safe and reliable investment option. The company has a long history of successful operations and its legal and regulatory framework is well established.
This indicates that Enbridge is likely to stay in good standing for the foreseeable future, making it a desirable investment choice.
In recent months, Enbridge stock has shown signs of improvement. The company reported a better-than-expected third-quarter performance that beat analyst forecasts on both the top and bottom lines. Profit was up 26% year-over-year, and the company also reported strong earnings growth in the fourth quarter, up 11% annually.
Overall, the outlook for Enbridge stock remains positive as the company continues to show positive growth in almost all areas. With the strength of their operations and established regulatory framework, Enbridge is likely to remain a desirable investment choice for some time to come.
When was the last time Enbridge stock split?
Enbridge last conducted a stock split in June 2016. This was a two-for-one stock split, which meant that each shareholder received an additional share for each share they owned. Prior to that, Enbridge’s last split occurred in August 2008 when the company conducted a one-for-three reverse split.
Enbridge does not have a set schedule for stock splits and does not guarantee that a split will occur in the future. However, the company’s Board of Directors does consider stock splits periodically.
Why is Enbridge stock dropping?
Enbridge stock has been dropping recently due to a multitude of factors, including the company’s financial performance and the current market volatility. The company continues to face significant headwinds as they grapple with a number of issues, including a drop in its core business, namely pipeline transportation services, due to lower demand due to the COVID-19 pandemic and reduced crude prices.
Enbridge saw its earnings drop year-over-year for the first two quarters of 2020 and is expected to see its revenue further drop in the upcoming quarters. It is also experiencing increasing debt since it is expanding its portfolio of renewable energy sources.
This has caused investors to pull out of the stock, leading to a further drop in Enbridge’s stock price.
At the same time, Enbridge also is facing competition from other energy companies, such as Chevron and ExxonMobil, who are looking to expand into renewables and alternative energy sources. This could further impact Enbridge’s profitability as the competition continues to ratchet up.
The stock market as a whole has been volatile due to increasing COVID-19 numbers, the election, and the lack of clarity regarding a new stimulus package in the US. All these factors have combined to put pressure on Enbridge’s stock and have been a contributing factor in the overall drop in the company’s stock price.
Is Enbridge still paying a dividend?
Yes, Enbridge is still paying a dividend. Enbridge’s Board of Directors declared a quarterly dividend of 83. 5 cents per common share for the quarter ending June 30th, 2020. This dividend was payable on August 14th, 2020 to shareholders of record as of July 31st, 2020.
The dividend rate for the quarter represented an 8% increase over the same quarter a year ago. The Board also declared a quarterly dividend of 45. 71 cents per series 1 preferred share and 33. 6 cents per series 4 preferred share.
This dividend was payable on September 15th, 2020 to shareholders of record as of August 31st, 2020.
On May 12th, 2020, Enbridge’s Board of Directors announced that it had authorized a reduction in the annual dividend rate by 50 percent, to $0. 98 per common share (approximately $1. 29 per common share on an annualized basis).
This decision was in response to the unprecedented market turmoil resulting from the COVID-19 pandemic. The dividend reduction helped preserve the company’s financial flexibility, maintain investment grade credit ratings, and focus on operational excellence.
Finally, Enbridge’s Board of Directors declared a dividend of 83. 5 cents per share earlier this month, which offers a strong indication that the company’s financial position is improving. It would seem that the dividend reduction taken this past spring has worked and that Enbridge is still committed to its dividend policy.
How many times has Enbridge split?
Enbridge has split a total of three times over the past decade and a half. The first split occurred in December 2004, when Enbridge distributed one Class A Non-Voting Common Share for every three Enbridge Common Shares held by shareholders.
This resulted in the company having 468 million Class A Common Shares and 156 million Common Shares outstanding.
The second split took place in February 2014, when Enbridge distributed one Class A Non-Voting Common Share for every two Enbridge Common Shares held by shareholders. This resulted in a total of 792 million Class A Common Shares and 324 million Common Shares outstanding.
The final split occurred in June 2020, when Enbridge distributed one Class A Non-Voting Common Share for each Enbridge Common Share held by shareholders. This resulted in the company having 1. 164 billion Class A Common Shares and 582 million Common Shares outstanding.
What company did a 20 to 1 stock split?
In April 2020, Apple Inc. announced an unprecedented 4-for-1 stock split. Under the new rule, every single share of Apple Inc. will be replaced with four shares worth one-quarter their current value.
This split is commonly referred to as a 20 to 1 stock split because effectively, holder of one share of Apple’s stock will own 20 shares with the same value after the split. Apple has not split its shares since 2014 when it opted for a 7-to-1 split.
With the current stock split, Apple Inc. will have over 4 billion outstanding shares, which is about ten times the number it had before the split. The move is seen as a way to make Apple’s stock more accessible and affordable to a larger group of individual investors.
The split is also expected to benefit current Apple shareholders as their ownership stake in the company is increased, which in turn should help increase the overall value of their holdings.
How often is Enbridge dividend paid?
Enbridge dividend is paid quarterly. The dividend is declared by their Board of Directors and announced typically during the first week of February, May, August and November. They pay out the dividends within 30-45 days of the declaration date.
The current dividend payment is $0. 8265 per share which was declared on November 5, 2019 and was paid on December 13, 2019. Enbridge offers a DRIP (dividend reinvestment plan) where you can automatically reinvest your dividends and buy additional Enbridge shares without having to pay any additional commission or fees.
Is Enbridge in trouble?
Enbridge has faced a number of challenges in recent years, but it has generally been able to maintain a strong financial position and remain an important player in North America’s energy infrastructure.
However, in May 2020, the company announced plans to slash its dividend—a move that has led some analysts to question its future outlook.
Enbridge has been hit hard by the drop in energy prices caused by the coronavirus pandemic, and it has had to cut costs and restructure its financial positions. In addition, the company has had to grapple with increasing scrutiny from environmental groups about the safety and sustainability of its infrastructure.
Enbridge’s dividend cut will likely cause it to lose investors, but the company remains committed to its projects and believes its financial position will remain stable. It is likely that the company will continue to face challenges in the immediate future, but with prudent management and a focus on sustainable growth, Enbridge should be able to ride out the storm.
What happened to Enbridge?
Enbridge is a leading North American energy company that transports and distributes energy products, operates pipelines and storage facilities, and liquefies and distributes natural gas. It was founded in 1949 as a small Canadian pipeline company and has since grown to become the largest oil and gas transportation company in North America.
In 2020, Enbridge faced several challenges, including a sharp drop in demand for its services and products due to the coronavirus pandemic. In response, it announced operational cutbacks and layoffs in the form of job reductions and furloughs.
In addition, Enbridge also faced difficulties with its Line 5, a pipeline that runs through the Straits of Mackinac connecting two Great Lakes. Native American tribes and environmental activists have sought to shut it down due to concerns that a worst-case scenario spill could cause damage to parts of the Great Lakes.
In early 2021, Enbridge announced a series of major expansion projects in the US and Canada, including the acquisition of two gas entreprises and the construction of a US$170 million oil pipeline. The expansion and investments indicate that Enbridge is taking advantage of the current period of lower energy demand to address upcoming demand increases and to diversify its portfolio.
In addition, the company has also sought to reduce its environmental impacts by investing in clean energy projects and achieving milestones in its goal of reaching net-zero carbon emissions by 2050.
Will Enbridge raise their dividend?
At this time, it is unclear if Enbridge will raise their dividend. The company recently announced that it would maintain their dividend at its current level, following their strategic review in the third quarter of 2020.
However, the company has stated that if conditions improve over the coming year, they may consider raising the dividend. Additionally, they announced they were focusing on returning free cash flow to shareholders, which could bode well for dividend increases in the future.
Investors should also be aware that Enbridge’s dividend could be influenced by the progress of its 2021-2025 capital plan. This plan includes new investments in solar, wind and gas storage, as well as upgrades to the company’s existing infrastructure.
Depending on the cost and success of these projects, the company’s financial performance will likely determine the future of their dividend.
Overall, Enbridge has signaled that dividends will remain at their current level for the near term, but could be subject to change depending on their financial performance and progress made on their 2021-2025 capital plan.
As a result, investors should closely monitor the company’s progress and financial results to determine if further increases to the dividend are likely.
What are the dangers of Enbridge Line 5?
The dangers of Enbridge Line 5 stem from the fact that it is a 75 year old pipeline that carries nearly 23 million gallons of crude oil and natural gas liquids through Michigan’s Straits of Mackinac each day.
There is a very real risk of a potentially catastrophic oil spill occurring in Michigan’s most sensitive ecological areas.
Aside from the danger posed by an oil spill, the pipeline itself poses other environmental threats due to its aging infrastructure. Enbridge Line 5 has an estimated 300 significant structural anomalies, including splits, dents, dings, and corrosion.
The pipeline has been estimated to have lost nearly 60,000 barrels of oil into waters near the Straits of Mackinac.
Enbridge Line also presents safety risks, with the potential for a rupture in the pipeline to cause fatal explosions and fires. Another damaging effect of Enbridge Line 5 is the overall damage to public resources that a catastrophic oil spill could cause.
A spill could interfere with commercial fishing and tourism industries, destroy shorelines and contaminate drinking water supplies.
Given the clear and present risks that Enbridge Line 5 poses to the environment, public safety, and the long-term economic health of Michigan, it is vitally important to ensure the safety of the pipeline, or to shut it down and replace it with a safer and less dangerous option.
Is Enbridge safe long term?
Enbridge has a strong safety track record, which has been demonstrated through multiple safety initiatives and an overall commitment to operational excellence. Over the last several years, Enbridge has invested billions of dollars in capital projects to modernize and maintain their network of pipelines and facilities, while continually pursuing industry best-practices and cutting-edge technologies.
This underscores their commitment to safe operations and environmental sustainability.
Enbridge is also committed to continuing their focus on safety, both in terms of operations and emergency preparedness. They are equipped with multiple layers of protection, including remote monitoring systems and rigorous inspection protocols.
They also have rigorous training for their employees that includes regular safety drills to ensure that Enbridge personnel are always prepared in the event of an emergency.
On top of that,
Enbridge has also come under close scrutiny from regulators, and have implemented various programs to ensure compliance with nationally-recognized regulations. Together, these measures make their operations more reliable and help ensure the long-term safety of their assets.
Ultimately, given their dedication to continuous improvement and industry standards, it seems likely that Enbridge will remain a safe long-term option for energy infrastructure.
