Enbridge Inc. (ENB) Update - Dec 19

[dan_s]

We are working on the EnBridge profile and I hope to publish it this week.

At the time of this post ENB was trading at $35.86US and $47.84Cdn
> Paid Dividends of $3.55Cdn in 2023
> Raising Dividends to $3.66Cdn in 2024 for annualized yield of 7.65%

Keith Kohl at The Energy Investor rates it a BUY up to $42.50US, which compares to my current valuation of $39.00.

TipRanks: "In the last 3 months, 10 ranked analysts set 12-month price targets for ENB. The average price target among the analysts is $38.17US. The 10 price targets range from $32.11US to $43.31US by TD Securities in a new report on 12/15/2023"

Here is Keith Kohl's note that came out this morning:
Market Capitalization: $76.2 billion
Outstanding Shares: 2.1 billion
52-Week Range: $31.03–$42.12

Enbridge is an energy infrastructure company that operates in both Canada and the
U.S. The company has several segments: Liquids Pipelines, Gas Transmission and
Midstream, Green Power and Transmission, and Energy Services.

Enbridge operates the world’s longest crude oil and liquids transportation system,
with 17,127 miles of active pipeline that delivers over 3 million barrels of crude oil
each day through its Mainline and Express networks.

Recent News
Since Enbridge has released its Q3 results, which we covered in last month’s issue, the
company released its 2024 financial guidance.

The market clearly took this news well, pushing shares nearly 8% higher so far this
month.

Enbridge announced that its 2024 adjusted EBITDA will range between $16.6 billion
and $17.2 billion, with distributable cash flow (DCF) per share between $5.40 and
$5.80. < MY DCF forecast is $5.70, which is dividend coverage of 1.56X < VERY GOOD

Moreover, the company also expects its base business EBITDA to grow more
than 4% and DCF to increase 3% compared to the midpoint of its 2023 guidance.
However, the real cherry on top to this good news is that the company is set to raise
its quarterly dividend to $0.915 per common share, or approximately $3.66 annually
— at current share prices, this represents a huge 10% annual yield for investors. < This is an error by Keith. Dividends are paid in Canadian dollars.

Also keep in mind that when this dividend increase takes effect March 1, 2024, it will
mark the 29th consecutive annual increase to this payout.

If you’ve ever questioned why we’ve held this position for so long in our portfolio, this
is the answer.
Enbridge remains a valuable long-term position in our model portfolio, especially as it
continues to pay out such a strong dividend.
Enbridge (NYSE: ENB) is rated a “Buy” under $42.50
------------------------
I decided to add ENB to our High Yield Income Portfolio because it has a HIGH level of dividend sustainability. ENB is for those of you that are investing primarily for dividend yield + steady capital growth.