First of all, allow me to confess, I love boring, both the company and the stock. Enbridge is one of the best actions negotiated on the TSX.
Enbridge shares are negotiated on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE).
Read the lines below:
Enbridge has paid dividends for over 66 years to its shareholders.
In December 2020, we announced an increase of 3% to our dividend per share, increasing the quarterly dividend to $ 0.835. This results in a dividend of $ 3.34 per share on an annualized basis for 2021. In the past 26 years, the dividend has increased at an average annual growth rate of 10%.
– Enbridge
Some key numbers to note in the above paragraphs are as follows: 66 years and 3% compared to existing dividend yield, a return of $ 0.835, an annual compound growth rate of 10% annual and 10%.
And the main thing is that Bridge has constantly increased the annual sliding dividend in the last 26 consecutive years, at the rate of 10% per year. Isn’t that a dividend beast then?
The only purpose of this article is to let my readers know how good the stock ENB and the juicy cash flow that can generate for you over the years. (with examples and practical scenarios).
Let’s start.
Enbridge stock overview
Before continuing more, you should know that Bridge is a first -rate Canadian company.
So your funds are safe. However, with actions or actions, there are risks involved. Blue fries are the safest growth instruments that you can find. They are also stable and growing companies.
One thing to note on the ENB action (TSX) is that stock growth is quite poor and that the actions are generally negotiated in a range.
Look at the graph of the action below for reference: (5-year period)
Looking at the table above, does that mean that you have to invest in Enbridge for dividends alone? It really depends.
But, note that the stock also has descent growth, it’s just that the entry and exit points must be supported.
What I mean is with growth and good dividend stocks such as Apple or Microsoft, your entry point can vary (because the stock will eventually increase, but this is not the case with Enbridge). The stock generally moves laterally or in a private beach.
But the percentage of Apple dividends is not as juicy as Bridge and you will also have to pay taxes on the dividends received (unless you buy it in RRSP).
In addition, I will not dig into the market capitalization of Enbridge ratios, p / e, etc. in this post. All this data is easily available. The purpose of this article is not to annoy you but to educate the importance of investing in the good of Canadian dividend actions.
“Over the decades, enbridge has delivered a higher shareholder value. Our low -risk commercial model has led to strong and coherent growth in the dividend that we continue to deliver. »»
– Enbridge
Why bumed when there are many other dividend actions?
Now it’s a brilliant question!
Dividend actions generally pay species once a month, 3 months (q), 6 months (semi-a) or annually.
When you compare dividend actions with> 5%, you will have a lot of FPI options, other actions in the sector.
Then, the question is again, why is ENB the best compared to everyone?
I am not saying that in B is the best compared to all other dividend stocks.
But for me, it’s the best.
Coz, the company has a stellar profile in the payment of dividends over the past 50 years and the dividend has increased year after year at a compound growth rate of 10 +%.
In addition, the company is one of the most sought after and most amazing Canadian companies with a market capitalization of almost 90b and good volumes of average trading.
Enbridge Stock Dividend History
Let us now examine the history of the stock dividend (redevelopment) and the growth rate.
We have a coherent track Record for the delivery of annual dividend increases and our continuous objective is to provide higher shareholder yields by assessing capital and dividends. – Enbridge
Well, as we know, enbridge dividends have constantly increased to a compound rate by 10% per year in the past 25 years. It’s consistent.
There is one thing that we can check from this – that dividends will increase in the future (given the history of the company but which do not need to be.)
You will find below the table of the history of the Dividend Enbridge over the years for your reference:
As you can see in the table above, Enbridge has always delivered dividends on time and each time. And also look at the growth rate!
Now consider the scenario below:
You bought 1000 Enbridge shares in 2015 and kept it from 2015 to 2021 in your TFSA. Here is how much your dividends would have increased over the years:
2015: $ 1860
2016: $ 2120
2017: $ 2410
2018: $ 2684
2019: $ 2952
2020: $ 3,240
2021: $ 3,337
In simple terms, simply by holding Enbridge shares for more than 5 years, your initial main amount gives a dividend of $ 3,337 per 1000 shared and held shares. And since you hold it in a TFSA, your dividends are also in tax franchise. It is a good decent cash flow for you. RIGHT?
In addition, the history of stock dividends says everything. Is the growth of dividends in the past 5 years not fantastic to love this beast? Management is extremely positive about the increase in dividends in the future.
Last words
To summarize, Enbridge is an amazing Blue Cops Canadian with great dividends.
You should certainly consider investing part of your portfolio in these equity.
You can find companies that can pay you more dividends than what is overwhelmed, but with the coherent file that this company has, it is really worth it to be considered and the best in the class.
With Enbridge, not only are dividends large, but dividends continue to increase each year to a compound rate of 10 +%.
Finally, don’t forget to tell me about your thoughts and comments below.
Thank you for reading! Have a good day.
