E Daily Stock Pick: Enbridge Inc

A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the second of five energy sector stocks primed to join Volio as the third of three representing the sector.  One of the stocks I discuss this week could be the forty-seventh overall Volio selection! Just five more Volio picks to make after this one.

My subject today is a large-cap oil and gas midstream company named, Enbridge Inc. Its trading ticker is ENB. This is my first report on Enbridge for this Volio portfolio.

Enbridge is an energy generation, distribution, and transportation company in the U.S. and Canada. Its pipeline network consists of the Canadian Mainline system, regional oil sands pipelines, and natural gas pipelines. The company also owns and operates a regulated natural gas utility and Canada’s largest natural gas distribution company. Additionally, Enbridge generates renewable and alternative energy with 2,000 megawatts of capacity.

The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.

I use three key data points to gauge dividend equities or funds like Enbridge Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money.

ENB Price

Enbridge's price per share closed at $30.60 yesterday. A year ago their price was $35.73. Price fell $5.13 or over 14% last year.

Assuming Enbridge's stock trades in the range of $20 to $40 this next year, its recent $30.60 price might rise by $4.40 to reach $35.00 by July 21, 2021.

ENB Dividends

Enbridge's most recent declared quarterly dividend was $0.575, paid June 1st. That $0.575 Q dividend equates to $2.30 annually for a yield of 7.51% at yesterday's $30.60 share price.

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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William K. 1 month ago Member's comment

While Enbridge is today a financially smart investment, it appears, there does exist a possibility that the organization may make an error that would change that for a while. Presently the company is using an environmentally risky pipeline beneath the water between two Great Lakes. The risk grows daily as the line ages and the use continues. Given all of the loudly voiced concerns and oppositions to this pipeline operation, the response to the failure will be incredibly harsh, and intensely punitive. Since there are alternatives that carry far less environmental risk, the present operation must be considered to be a cost to benefit gamble in process.

While it is rather obvious that the management is willing to take the risk, it seems that they do not yet understand the magnitude of the ultimate cost of a failure of that line. Perhaps they should think more carefully.