Wednesday, May 10, 2017

Recent Buy - Enbridge Inc. (ENB.TO)

On Friday May 5, I Bought 20 shares of Enbridge Inc. at CA$ 55,68 per share plus commission.



Enbridge Inc. engages in energy transportation activities in the United States and Canada. It operates through five segments: Liquids Pipelines, Gas Distribution, Gas Pipelines and Processing, Green Power and Transmission, and Energy Services. The Liquids Pipelines segment operates common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals. The Gas Distribution segment operates as a natural gas utility that serves residential, commercial, and industrial customers in Central and Eastern Ontario, and Northern New York State, as well as in Quebec and New Brunswick. The Gas Pipelines and Processing segment holds interests in natural gas pipelines, and gathering and processing facilities, including the Alliance pipeline and the Vector pipeline, as well as transmission and gathering pipelines in the Gulf of Mexico; and the Aux Sable, a natural gas fractionation and extraction facility. The Green Power and Transmission segment engages in the renewable energy projects, such as wind, solar, and geothermal projects with a generating capacity of approximately 1,900 megawatts; and operates waste heat recovery facilities. The Energy Services segment provides energy supply and marketing services to refiners, producers, and other customers; crude oil and NGL marketing services; physical barrel marketing services; and natural gas marketing services. This segment also provides natural gas supply, transportation, balancing, and storage services for third parties. 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.


ENB is a member of Canadian Dividend All-Star List with a 21 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 14.0, 18.9 , 17.6 and 13.9. 

After the latest dividend increase announcement, which was a couple of days ago, Enbridge Inc. now pays dividends of CA$ 0.61 per share normally in March, June, September and December.


If you are interested, you can read analysis of Enbridge by Jason Fieber here and by Dividend Earner here.


Details of my purchase:




Some ratings for ENB:

    Yahoo:  Mean Recommendation 2.3, 1y Target Est CA$ 63.71
    Reuters: Mean Rating 2.15
    Morningstar:  (***) 


At today's exchange rate, this purchase 20 shares of ENB will increase € 24.24 (CA$ 36.36) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to € 10,850.00. With a purchase price CA$ 55.68 plus commission (CA$ 5.00) my starting yield on cost is 4.36%. After this acquisition, ENB's weight of my portfolio is about 0.20% and its share of future annual dividend income is approximately 0.22%. My purpose is slowly to build up an ENB's share of my portfolio, if the price remains at these levels.


Click here to see my portfolio.

Full Disclosure: Long ENB 

Thanks for stopping by!

 

1 comment:

  1. after Jasons analysis I was also thinking to jump on this train. However as recently opportunities in OHI and CAH were coming up, I first took this offer. ENB definitely remains on my watch list and may be next month I deploy some cash. Not using yet one of the super cheap broker, my purchases are seldom below the 2K EUR threshold, meaning the number of transactions is smaller

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