Enbridge Inc (NYSE:ENB) Declares Dividend Increase - C$0.97 Per Share

Key Points

• Enbridge raised its quarterly dividend to C$0.97 per share (2.9% increase), payable March 1 with record/ex-dividend date on February 17, implying an annualized yield of about 8.1%.
• The dividend appears under strain — the company has a reported payout ratio of 118% and analysts' forecasts imply a future payout ratio near 123.4%, meaning earnings alone do not currently cover the dividend.
• In the most recent quarter Enbridge missed earnings and revenue (EPS $0.33 vs $0.39 expected; revenue $7.0B vs $8.45B expected), and the stock traded down about 0.8% to $47.73 following the results.

Enbridge Inc (NYSE:ENB - Get Free Report) TSE: ENB declared a quarterly dividend on Tuesday, December 2nd. Investors of record on Tuesday, February 17th will be paid a dividend of 0.97 per share by the pipeline company on Sunday, March 1st. This represents a c) dividend on an annualized basis and a yield of 8.1%. The ex-dividend date is Tuesday, February 17th. This is a 2.9% increase from Enbridge's previous quarterly dividend of $0.94.

Enbridge has decreased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 2 years. Enbridge has a payout ratio of 118.0% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Enbridge to earn $2.18 per share next year, which means the company may not be able to cover its $2.69 annual dividend with an expected future payout ratio of 123.4%.

Enbridge Trading Down 0.8%

NYSE:ENB traded down $0.39 during trading hours on Wednesday, hitting $47.73. The company had a trading volume of 4,861,785 shares, compared to its average volume of 3,939,905. Enbridge has a 1 year low of $39.73 and a 1 year high of $50.54. The company has a market cap of $104.10 billion, a P/E ratio of 26.22 and a beta of 0.68. The company has a 50-day moving average of $48.08 and a 200 day moving average of $47.03. The company has a current ratio of 0.80, a quick ratio of 0.68 and a debt-to-equity ratio of 1.64.

Enbridge (NYSE:ENB - Get Free Report) TSE: ENB last posted its quarterly earnings results on Friday, November 7th. The pipeline company reported $0.33 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.06). Enbridge had a return on equity of 10.51% and a net margin of 9.20%.The company had revenue of $7 billion for the quarter, compared to analysts' expectations of $8.45 billion. During the same quarter in the prior year, the firm earned $0.55 EPS. Sell-side analysts expect that Enbridge will post 2.14 earnings per share for the current year.

About Enbridge

Enbridge Inc, together with its subsidiaries, operates as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The Liquids Pipelines segment operates pipelines and related terminals to transport various grades of crude oil and other liquid hydrocarbons in Canada and the United States.

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