Enbridge Inc (NYSE:ENB) Announces Dividend Increase - $0.68 Per Share

Key Points

• Enbridge Inc declared a quarterly dividend of $0.68 per share, which reflects a 0.7% increase from its previous dividend and an annualized yield of 6.08%.
• The company has a payout ratio of 120.2%, indicating it relies on its balance sheet to cover dividend payments, which raises concerns about future dividend sustainability.
• Despite these concerns, Enbridge received favorable ratings from various analysts, with a consensus target price of $67.00 suggesting potential upside for investors.

Enbridge Inc (NYSE:ENB - Get Free Report) TSE: ENB announced a quarterly dividend on Wednesday, July 30th, Wall Street Journal reports. Shareholders of record on Friday, August 15th will be given a dividend of 0.6839 per share by the pipeline company on Monday, September 1st. This represents a c) dividend on an annualized basis and a yield of 6.0%. The ex-dividend date is Friday, August 15th. This is a 0.7% increase from Enbridge's previous quarterly dividend of $0.68.

Enbridge has a dividend payout ratio of 120.2% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Enbridge to earn $2.18 per share next year, which means the company may not be able to cover its $2.74 annual dividend with an expected future payout ratio of 125.7%.

Enbridge Stock Up 1.4%

NYSE:ENB traded up $0.62 on Friday, reaching $45.91. 2,037,124 shares of the stock traded hands, compared to its average volume of 3,992,228. The company has a market capitalization of $100.11 billion, a price-to-earnings ratio of 23.64, a PEG ratio of 4.19 and a beta of 0.79. The company has a current ratio of 0.73, a quick ratio of 0.66 and a debt-to-equity ratio of 1.51. Enbridge has a 12 month low of $36.50 and a 12 month high of $47.44. The company's fifty day simple moving average is $45.39 and its 200 day simple moving average is $44.54.

Enbridge (NYSE:ENB - Get Free Report) TSE: ENB last released its quarterly earnings data on Friday, May 9th. The pipeline company reported $0.72 earnings per share for the quarter, beating analysts' consensus estimates of $0.68 by $0.04. The business had revenue of $7.27 billion during the quarter, compared to analyst estimates of $10.20 billion. Enbridge had a net margin of 10.16% and a return on equity of 10.41%. During the same period last year, the business earned $0.92 EPS. Equities analysts predict that Enbridge will post 2.14 EPS for the current fiscal year.

Analysts Set New Price Targets

ENB has been the subject of a number of analyst reports. Wall Street Zen upgraded shares of Enbridge from a "sell" rating to a "hold" rating in a research note on Thursday, May 22nd. Citigroup started coverage on shares of Enbridge in a research note on Friday, April 4th. They set a "buy" rating for the company. Raymond James Financial upgraded shares of Enbridge to a "moderate buy" rating in a research note on Wednesday, April 23rd. National Bankshares reiterated a "sector perform" rating on shares of Enbridge in a research note on Monday, May 12th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and issued a $67.00 price target on shares of Enbridge in a research note on Monday, May 12th. Five investment analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $67.00.

Enbridge Company Profile

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.