Enbridge Inc Plans Quarterly Dividend of C$0.97 (NYSE:ENB)

Key Points

• Enbridge declared a quarterly dividend of C$0.97 per share, payable September 1 to shareholders of record on August 14, representing an approximately 7.0% annualized yield.
• The dividend may be financially pressured: Enbridge’s payout ratio is 125%, while analysts expect a future payout ratio of about 121.3% based on projected earnings of C$2.35 per share versus an annual dividend of C$2.85.
• Enbridge’s latest quarterly results exceeded estimates, with EPS of C$0.71 versus C$0.69 expected and revenue of C$9.37 billion versus an $8.49 billion consensus forecast; institutional investors own 54.6% of the stock.

Enbridge Inc (NYSE:ENB - Get Free Report) TSE: ENB announced a quarterly dividend on Tuesday, July 28th. Investors of record on Friday, August 14th will be paid a dividend of 0.97 per share by the pipeline company on Tuesday, September 1st. This represents a c) annualized dividend and a dividend yield of 7.0%. The ex-dividend date of this dividend is Friday, August 14th.

Enbridge has decreased its dividend by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 2 consecutive years. Enbridge has a dividend payout ratio of 125.0% meaning 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 $2.35 per share next year, which means the company may not be able to cover its $2.85 annual dividend with an expected future payout ratio of 121.3%.

Enbridge Price Performance

ENB stock traded down $0.04 during trading on Tuesday, reaching $55.31. 2,705,031 shares of the company were exchanged, compared to its average volume of 4,690,321. The company has a market cap of $120.79 billion, a P/E ratio of 25.97 and a beta of 0.58. Enbridge has a 52-week low of $44.58 and a 52-week high of $58.45. The stock's 50 day moving average price is $55.71 and its 200 day moving average price is $53.36. The company has a debt-to-equity ratio of 1.69, a quick ratio of 0.73 and a current ratio of 0.81.

Enbridge (NYSE:ENB - Get Free Report) TSE: ENB last issued its earnings results on Friday, May 8th. The pipeline company reported $0.71 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.69 by $0.02. The company had revenue of $9.37 billion during the quarter, compared to analysts' expectations of $8.49 billion. Enbridge had a net margin of 9.83% and a return on equity of 11.21%. During the same period last year, the company posted $1.03 earnings per share. As a group, analysts predict that Enbridge will post 2.13 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Enbridge

Institutional investors and hedge funds have recently bought and sold shares of the stock. Triumph Capital Management purchased a new stake in shares of Enbridge during the third quarter worth about $26,000. Arlington Trust Co LLC lifted its stake in shares of Enbridge by 114.6% during the second quarter. Arlington Trust Co LLC now owns 500 shares of the pipeline company's stock valued at $27,000 after buying an additional 267 shares during the period. Turning Point Benefit Group Inc. acquired a new stake in Enbridge during the third quarter worth approximately $28,000. Inspire Investing LLC acquired a new stake in Enbridge during the fourth quarter worth approximately $29,000. Finally, Garner Asset Management Corp purchased a new stake in Enbridge in the 4th quarter worth approximately $30,000. Hedge funds and other institutional investors own 54.60% of the company's stock.

Enbridge Company Profile

Enbridge Inc is a Calgary, Alberta–based energy infrastructure company that develops, owns and operates a diversified portfolio of energy transportation, distribution and generation assets. Its core activities include the operation of crude oil and liquids pipelines, natural gas transmission and distribution systems, and energy storage facilities. In addition to midstream transportation and storage, Enbridge has expanded into renewable power generation and energy transition projects, including wind, solar and utility-scale generation assets.

The company serves customers primarily in Canada and the United States and has interests in other international energy projects.

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