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. 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. Enbridge's Dividend Payout Ratio for the fiscal year that ended in Dec. 2019 is calculated as, Enbridge's Dividend Payout Ratio for the quarter that ended in Sep. 2020 is calculated as, Enbridge  (NYSE:ENB) Dividend Payout Ratio Explanation. All rights reserved. Enbridge’s dividend hike. 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 … 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. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Over the past 25 years, the dividend has grown at an average compound annual growth rate of 11%. In December 2019, we announced a 9.8% increase to our dividend per share, increasing the quarterly dividend to $0.810. 2020 was 0.99. Minimum 15 minutes delayed. If a company dividend payout ratio is too high, its dividend may not be sustainable. Enbridge offers a unique value proposition that brings together a combination of transparent growth, a reliable, low-risk business model and significant dividend income. The reason ENB’s yield is so high is because its dividend payout is increasing, while its share price falls. * All numbers are in millions except for per share data and ratio. ENB Dividend Date: 3/1/2021: ENB Annual Dividend: C$3.17: ENB Dividend Yield: 7.47%: ENB Payout Ratio: 330.00% (Trailing 12 Months of Earnings) 118.65% (Based on This Year's Estimates) 1,004.06% (Based on Cash Flow) ENB Most Recent Increase: C$0.02 increase on 12/8/2020 The stock information below is provided by Nasdaq. Enbridge has paid dividends for over 65 years to its shareholders. Returns since inception, October 2013. In the first six months, the company’s dividend payout ratio stood at 64% which is lower than its payout target of 65%. All Rights Reserved. The world depends on oil and natural gas for everything from planes to shipping containers to cars. Retired? Aditya Raghunath | October 6, 2020 | More on: ENB ENB. The growth rate is calculated with least square regression. The stock is currently trading at $38.6, just 16% over its March lows. EBBGF's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! The company already supplies natural gas to over 170 million customers in North America. 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. During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Enbridge was 58.70% per year. The dividend payout ratio of Enbridge Inc is 3.30, which seems too high. © 2004-2020 GuruFocus.com, LLC. Market Cap: 69.06B. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Its full-year distributable cash flow guidance per share remains unchanged at $4.5-$4.8, indicating a payout ratio of less than 70%. Only PremiumPlus Member can access this feature. The company guidance indicates that it will grow its dividend yield by around 4% over the next couple of years. Payout Ratio: --PE Ratio: 44.4. ... 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% The dividend payout ratio of Enbridge Inc is 3.30, which seems too high. Enbridge transports 66% of all Canadian crude exports and around 25% of all crude oil in North America. During the past 10 years, the average Dividends Per Share Growth Rate was 15.50% per year. This is quite a high payout ratio that suggests the dividend is not well covered by earnings. Enbridge stock has delivered a return of 15.8% from 1995-2019, compared to 8.9% on the S&P TSX and 10.6% on the S&P 500. ENB earnings are insufficient to cover ENB's dividend payouts. Enbridge has increased its dividend payout even as the pandemic caused other companies to cut or entirely suspend dividends. However, there is an outlier in the game: Enbridge (TSX:ENB)(NYSE:ENB). Enbridge has been a dividend aristocrat for 24 years, making it the second-oldest aristocrat in the energy sector. The company has $14 billion worth liquidity that can bridge its requirement through 2021 even if it doesn’t get access to debt capital markets. While the prospects for oil look bleak right now, it is not as if the commodity is going to disappear from our lives overnight. This could mean that Enbridge’s natural gas business could gather momentum down the years. The lowest was 2.26%. Next dividend payment date Mar 1, 2021 News/Announcments: None Updated: 2020-12-11. Apart from fuel, oil has multiple use cases and is used in the manufacturing of products as diverse as candles, trash bags, roller skates, tennis racquets, and fishing boots. Enbridge is one of the largest midstream companies in North America, engaged in the storage and distribution of oil and natural gas. Enbridge expects its 2020 payout ratio, based on its distributable cash flow, to be approximately 68-72%. Please read the Privacy Statement and Terms of Service for more information. The Motley Fool Canada » Dividend Stocks » Enbridge (TSX:ENB) Stock: This Dividend Paying Giant Is Trading at a Massive Discount! Oil stocks are not a favourite among investors right now. There are many things in these metrics that scream for a dividend cut. 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. With a cash payout ratio of 170%, Enbridge’s dividend payments are poorly covered by cash flow. ENB dividend dates. 5 Stocks Under $49 (FREE REPORT). In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Its financial strength is evident in its current and quick ratios, which are … All numbers are in their local exchange's currency. Yield: 9.79%. When you … ENB has been successfully added to your Stock Email Alerts list. Retained earnings-334.40%. In 2020, Enbridge raised its dividend by 9.8%. A stock’s dividend reliability is determined by a healthy payout ratio that is higher than other stocks. Enbridge last raised its dividend payout by 9.8% and sports an attractive dividend yield of 9.5%. I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. Enbridge's Dividends per Share for the There is a minimum 15 minute delay in market data. If we go just off of Q2, we get a payout ratio of about 100%. 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. Note: Enbridge's dividend is paid in Canadian dollars, so the U.S. dollar value of the dividend fluctuates with exchange rates. months ended in Sep. 2020 was $0.61. That translates to a payout ratio of 64.6%. Dividend.com: The #1 Source For Dividend Investing. So right now Enbridge’s dividend looks safe and secure. Enbridge's dividend payout ratio for the months ended in Sep. 2020 was 1.65. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. 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. Enbridge's dividend payout ratio for the That brings up Kinder Morgan, which increased its dividend 5% in 2020. Tilray and Aphria Merger: A Hot New Pot Stock Opportunity? The company also increased its quarterly dividend by 3% to CAD 0.835, a 7.6% yield on an annual basis. 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. The company has also increased its dividend for 25 consecutive years so far and it faces large debt. For more information regarding to dividend, please check our Dividend Page. Last Close Price: $34.10. Dividend. For 2019, Enbridge paid around 65% of its cash flows as dividends. Here’s why I think the stock presents a tremendous buying opportunity. The dividend payout ratio of Enbridge Inc is 3.29, which seems too high. Its full-year distributable cash flow guidance per share remains unchanged at $4.5-$4.8, indicating a payout ratio of less than 70%. Dividend payout ratio measures the percentage of the company's earnings paid out as dividends. In the long term, management is targeting a dividend payout ratio of around 65% of the company’s distributable cash flow. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. And the median was 10.90% per year. Enbridge’s distributable cash flow per share was $4.5 in 2019. Enbridge’s forward dividend yield is a tasty 8.4% right now. That’s exactly what happened with Enbridge. Sorry. During the past 13 years, the highest Dividend Payout Ratio of Enbridge was 2.29. 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. Cannabis 2.0: Is Cannabis Set to Comeback in 2021? (Source: “Enbridge Inc. Reports Strong Fourth Quarter & Full Year 2019 Results,” Enbridge Inc, February 14, 2020.) The lowest was 0.68. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. That is, $1,641 in common share dividends, over $1,647 in earnings. Warning! ENB Dividend Date: 3/1/2021: ENB Annual Dividend: $2.46: ENB Dividend Yield: 7.39%: ENB Three Year Dividend Growth: 39.50%: ENB Payout Ratio: 123.00% (Trailing 12 Months of Earnings) 128.80% (Based on This Year's Estimates) 118.84% (Based on Next Year's Estimates) 74.31% (Based on Cash Flow) ENB Dividend Track Record: 1 Years of Consecutive Dividend Growth Current as of December 19, 2020. When you’ve got a stock falling while its dividend rises, its yield is likely to increase a lot. Is it really the case? This insulates Enbridge from commodity price movements at least in the short term. 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%. A lower payout ratio may indicate that the company has more room to increase its dividends. Warning Sign: If a company dividend payout ratio is too high, its dividend may not be sustainable. At the same time, its stock fell 25%. This would imply a sustainable payout ratio of approximately 70%. On a trailing 12 month basis, Enbridge is currently paying out 126% of earnings. This is your chance to get in early on what could prove to be very special investment advice. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Enbridge paid out 100% of its profit as dividends, over the trailing twelve month period. We expect the company to maintain a 1.45% coverage ratio and a 68% dividend payout ratio … Low oil prices and a scenario where oil consumption might never go back to pre-pandemic levels have put a dampener on most oil stocks. Enbridge’s distributable cash … 434.40%. The company targets a payout ratio of below 65% of its distributable cash flows in the long term. Past performance is a poor indicator of future performance. During the past 12 months, Enbridge's average Dividends Per Share Growth Rate was 9.80% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 11.70% per year. Analysts tracking Enbridge have a 12-month average target price of $52 for the stock which is 35% above its current trading price. © 2020 The Motley Fool Canada, ULC. * The bar in red indicates where Enbridge's Dividend Payout Ratio falls into. Data provided by Nasdaq. Speaking of undervalued dividend stocks.... Just Released! 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. During the past 5 years, the average Dividends Per Share Growth Rate was 15.20% per year. ENB has been removed from your Stock Email Alerts list. Enbridge Inc stock rating and analysis - : a summary of key financial strength and profitability metrics. Enbridge also has a growing portfolio of renewable assets. Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Click here to check it out. The lowest was 0.50% per year. Not to alarm you, but you’re about to miss an important event. 3 of the Best Dividend Stocks to Make Fast Money, distributable cash flow guidance per share. 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. And the median was 3.17%. We credit this unique value proposition for delivering excellent returns to shareholders year after … Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. GuruFocus has detected 3 Severe Warning Signs with ENB. That said, the demand for oil and natural gas has not just declined but fallen off a cliff amid the pandemic. This translates into $3.24 dividend per share on an annualized basis for 2020. After accounting for its dividend yield, total annual returns might be close to 45%. This feature is only available for Premium Members, please sign up for. Stock quotes provided by InterActive Data. Warning Sign: If a company dividend payout ratio is too high, its dividend may not be sustainable. And the median was 1.12. The company has consistently increased its dividend payout for the last 25 years. Enbridge is a Dividend Aristocrat with a track record of increasing its dividend for 24 consecutive years. Simply click the link below to grab your free copy and discover all 5 of these stocks now. In dividends investing, Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. View and export this data going back to 2001. ENB dividend payout ratio Enbridge Inc paid out 434.4% of its net income over the trailing twelve months. Since 1995, its dividend growth CAGR is an enviable 11%. Enbridge contracts are “take-or-pay,” which means that the buyer has to give a minimum guarantee on purchases or pay the seller for any shortfall. You can manage your stock email alerts here. The Motley Fool owns shares of and recommends Enbridge. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Please enter Portfolio Name for new portfolio. I understand I can unsubscribe from these updates at any time. Enbridge has strong fundamentals, is diversifying, and has the capacity to pay out regular dividends. Frequency: Quarterly Don't miss out! During the past 13 years, the highest Trailing Annual Dividend Yield of Enbridge was 8.84%. Enbridge's dividend payout ratio for the months ended in Jun. Market Crash: This Expert Thinks You Should Take Cover Now. Payout ratio. The company believes that it can grow its distributable cash flow per share at a 5% to 7% annual rate through 2022. Enbridge targets a payout ratio below 65% of its DCF. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. As of today (2020-12-19), the Dividend Yield % of Enbridge is 7.42%. 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