Wednesday, December 9, 2020

Dividend Increase – Enbridge Inc. (ENB)


Yesterday, December 8 the Board of Directors of Enbridge Inc. announced a quarterly dividend increase of from CA$ 0.810 to CA$ 0.835 per share that’s payable March 1, 2020 to holders of record February 12, 2020. This represents a 3.09% increase over last quarterly dividend.


"For the 26th consecutive year, we're pleased to be providing our shareholders with another dividend increase in 2021. This reflects our confidence in our healthy 5-7% DCF per share growth outlook, on average, through 2023 and beyond, the priority we place on returning capital to shareholders, and our strong financial position. We'll continue to ratably grow the dividend up to the level of average annual DCF per share growth, while maintaining our dividend policy payout of 60-70% of distributable cash flow.


With current price CA$ 42.80 (yesterday's close), this raise brings their dividend yield to 7.80%.


Enbridge is a member of Canadian Dividend All Star List with a 24 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 10.0, 11.7, 16.1 and 14.8 (Canadian Dividend All-Star List)



Since I own 168 shares of ENB, this will increase my portfolio's projected annual net dividend income by CA$ 12.29.


This increase raises my YOC to 7.47%.



Summary of 2020 Dividend Increases / Cuts



As you can see, some large dividend cuts will have the effect that full-year growth will be negative. The pandemic is nowhere near over and it is quite likely that more negative dividend announcements will come in the coming months.



Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long ENB


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