The first payment at the new rate will be payable on March 1, 2021, to shareholders of record on Feb. 12, 2021. 3 of the Best Dividend Stocks to Make Fast Money. The company has proven it can pay its dividend and increase it. Returns since inception, October 2013. On April 23, Invesco announced it would be cutting its dividend by 50%, from 31 cents per share to 15.5 per share. If you buy this business for its dividend, you should have an idea of whether Enbridge's dividend is reliable and sustainable. Enbridge has been plagued with project delays well before the coronavirus crisis hit. I explain why in spite of my pessimistic forward outlook, I am neutral on SKT. Conserving cash is more important than ever before. We should also look at the company’s dividend history. © 2020 The Motley Fool Canada, ULC. The information shown above includes distributions declared by the Fund up to and including 2010. Putting your money into them today could lead to significant losses in the weeks and months ahead. Enbridge has the second-greatest access to low-cost capital in the industry, with C$18 billion available. Conserving cash is more important than ever before. The first split for ENB took place on May 31, 2005. But at over 8%, it’s glaring. Is Enbridge (TSX:ENB)(NYSE:ENB) the next to suspend or cut its dividend? Dividend Stocks » Enbridge (ENB) has 3 splits in our ENB split history database. Dividend/Distribution History. On an annual basis, that yields more than 8% per year. Recommended for you. Enbridge has delivered 16% dividend growth per year on average over the past 10 years. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Is Enbridge (TSX:ENB)(NYSE:ENB) the next to suspend or cut its dividend? The blue-chip energy stock recently hit a 52-week low as low oil prices are plaguing oil and gas stocks in Canada yet again. Enbridge Inc., a Canadian company, is a leader in energy transportation and distribution in North America and internationally. When Enbridge announced it was increasing its dividend payments in December, it marked the 25th year in a row that the company hiked its dividend payments. But at over 8%, it’s glaring. Investors fully expect Enbridge Energy Partners (EEP) to cut its dividend when it completes its strategic review, now extended into the second quarter in its latest earnings report. Its executives also took pay cuts, and Enbridge was also reducing the base pay for its non-union employees. Now read: About Enbridge: Should You Fear A Dividend Cut? The Motley Fool Canada » Dividend Stocks » Is a Dividend Cut Coming for Enbridge (TSX:ENB) Stock? However, recent moves announced by the company suggest that management is looking for ways to cut costs, which could mean a possible dividend cut could be on the horizon. It would be risky for investors to rely on this dividend given the challenges Enbridge faces today. Enbridge has a trailing twelve-month payout ratio of 176.87%, meaning the dividend is not sufficiently covered by its earnings. Enbridge Inc (TSX:ENB)(NYSE:ENB) has fallen 33% in just the past month. So this dividend makes sense to us in 2021," Monaco said. All rights reserved. This could indicate that the company has never provided a dividend or that a dividend is pending. In my situation, I don’t really mind now since I don’t depend on my portfolio (yet) to manage my budget. Enbridge’s dividend has normally been over 5%, and so it’s normally been a high-paying dividend stock. Since 1926, 40.2% of the S&P 500's total return can be attributed to dividends, according to The New York Times. The company has maintained a double digit dividend CAGR over the past few years. Chevron, which traces its roots to 1879, hasn't cut its dividend since 1934 during the Great Depression. Thereafter the information depicts dividends declared by ENF. An analysis of Enbridge’s dividend must go a little deeper than just the numbers. This is a big reason why Enbridge has been able to stack up one of the most impressive dividend growth track records in all of energy. The pipeline company says it will increase its quarterly payment to shareholders to 83.5 cents per share, up from 81 cents per share. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Why a potential dividend cut won’t be detrimental for Enbridge investors Why a potential dividend cut won’t be detrimental for Enbridge investors ENB's second split took place on June 01, 2011. Enbridge’s dividend of around 8% may look appealing to income investors, but it’s important to remember that payouts aren’t guaranteed; the company can decide tomorrow that it needs to make a change. The company has thus far avoided taking more drastic measures, such as laying off staff. Will Enbridge’s dividend be cut? That’s the threat of a snap dividend cut—and the massive damage it can do to your income and your nest egg. We should also look at the company’s dividend history. This was a 2 for 1 split, meaning for each share of ENB owned pre-split, the shareholder now owned 2 shares. It would be disappointing for the company to have just reached that milestone and only months later have to suspend or reduce the dividend. That’s a concern for Enbridge investors, as it pushes more pressure on the possibility that a dividend cut may be inevitable. While it’s certainly possible that the company continues to hold off on making any drastic move on its dividend, that doesn’t mean it’s safe. Market Crash 2021: 2 Safe Stocks if You’re Scared, Retired? Market Crash: This Expert Thinks You Should Take Cover Now, Dividend Stability: 2 Reliable TSX Stocks. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. © 2020 The Motley Fool Canada, ULC. However, recent moves announced by the company suggest that management is looking for ways to cut costs, which could mean a possible dividend cut could be on the horizon. Enbridge Inc. (TSX:ENB)(NYSE:ENB) is a 9%-yielding falling knife that could be overdue for a big bounce as it nears its 52-week-low level of support. The first split for ENB took place on May 31, 2005. This could indicate that the company has never provided a dividend or that a dividend is pending. As a transporter of energy, Enbridge operates, in Canada and the United States, the world's longest crude oil and liquids pipeline system. Canada Pension Plan: Should You Start Your CPP at 60, 65, or 70? The other moat creating advantage is the highly regulated nature of the business. Enbridge avoids layoffs, but… On June 17, Enbridge announced that close to 800 employees took leaves of absence, moved to part-time, or accepted early retirement packages. However, with ample coverage for its dividend, I don’t believe we will see a dividend cut at Enbridge. N/A. An analysis of Enbridge’s dividend must go a little deeper than just the numbers. With a high yield and a poor outlook for the industry, it was likely an unavoidable decision for the company. Currently, Enbridge pays investors a quarterly dividend of $0.81. Last year's total dividend payments show that Enbridge has a trailing yield of 7.3% on the current share price of CA$44.17. Enbridge offers a unique value proposition that brings together a combination of transparent growth, a reliable, low-risk business model and significant dividend income. Invesco cuts dividend 50% AP Images. Last year's total dividend payments show that Enbridge has a trailing yield of 7.3% on the current share price of CA$44.17. As a result, readers should always check whether Enbridge has been able to grow its dividends, or if the dividend might be cut. Currently, Enbridge pays investors a quarterly dividend of $0.81. Enbridge expects to cut its capex by approximately $1 billion for 2020 and increase it by a similar amount in 2021 when COVID-19 headwinds have a chance to fade. In short, investors shouldn’t expect oil and gas stocks to recover until COVID-19’s no longer posing a threat to the global economy, and that could be a while. The midstream industry is one that enjoys numerous competitive advantages for several reasons. A sustained distribution/dividend that has never been cut. Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share. Enbridge’s dividend has normally been over 5%, and so it’s normally been a high-paying dividend stock. The pipeline company says it will start paying a quarterly dividend of 81 cents, effective March 1, up from its previous rate of 73.8 cents. A company that pays out close to half its earnings as dividends and retains the other half of earnings has ample room to grow its business and pay out more dividends in the future. Its executives also took pay cuts, and Enbridge was also reducing the base pay for its non-union employees. Furthermore, Enbridge has largely insulated itself from volatile commodity pricing. There are some dividend stocks out there that you can see are doing everything they can to cling onto payouts that seem doomed to be cut. On June 17, Enbridge announced that close to 800 employees took leaves of absence, moved to part-time, or accepted early retirement packages. In 2019, Enbridge paid out $6.4 billion in dividends during the year. The time remaining before the next ex-dividend date. Will Enbridge’s dividend be cut? Why the company may consider adjusting its dividend policy. Don't miss out! CALGARY -- Enbridge Inc. is raising its dividend by nearly 10 per cent. Close. I understand I can unsubscribe from these updates at any time. However, with ample coverage for its dividend, I don’t believe we will see a dividend cut at Enbridge. The good news is that Enbridge is still a solid long-term investment. ... its dividend is usually at a higher risk of being cut. I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. Here are 24 big names that have already reduced or stopped their payouts. Reuben Gregg Brewer believes dividends are a window into a company's soul. Just Released! Enbridge has delivered 16% dividend growth per year on average over the past ten years. Even as many of its peers in the oil and gas industry have slashed or suspended their payouts, the Canadian pipeline company has refused to follow suit. And while the near-term future and safety of the dividend are up in the air, I think income investors should buy the stock. Stock and Dividend Information. The company has thus far avoided taking more drastic measures, such as laying off staff. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. The shares will have a yield of about 6.3 per cent, based on Enbridge's closing share price on Monday. First, it’s highly capital intensive, with major projects often costing billions of dollars to complete. However, recent moves announced by the company suggest that management is looking for ways to cut costs, which could mean a possible dividend cut could be on the horizon. As a result, shareholders participating in the DRIP will automatically receive cash dividends. August is the time when investors might expect to see the company make an announcement related to its dividend. The Board of Directors of Enbridge Inc. (TSX, NYSE: ENB) has declared a quarterly dividend of $0.81 per common share, payable on June 1, 2020 to shareholders of record on May 15, 2020. They're hiking it another 10% this year, guaranteed. Enbridge (ENB) has 3 splits in our ENB split history database. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. 98% of dividend cuts caught in advance. This is your chance to get in early on what could prove to be very special investment advice. The dividend is safe when you consider ENB's distributable cash flow. The company last raised its dividend payout by 10% and sports an attractive dividend yield of 6.2%. A rate cut is a plus for dividend payers because lower yields on so-called “safe” investments, like Treasuries, drive more buyers to dividend stocks. Enbridge (ENB) Declares $0.81 Quarterly Dividend; 10.5% Yield Enbridge (ENB) Declares $0.7380 Quarterly Dividend; 7.8% Yield Enbridge (ENB) Raises Quarterly Dividend 10% to $0.7380; 9.4% Yield Simply click the link below to grab your free copy and discover all 5 of these stocks now. Is Enbridge (TSX:ENB)(NYSE:ENB) the next to suspend or cut its dividend? Ex-Date: N/A. I believe it’s a great place to buy Enbridge at the low $40’s per share level for investors with an investment horizon of at least three years. which shouldn’t come as much of a surprise to investors. Many dividend stocks have been cut or suspended — one of the latest being Inter Pipeline, which shouldn’t come as much of a surprise to investors. 1. If there’s no improvement and no reason to be optimistic, it may only be a matter of time before the company decides to cut or suspend its payouts. Given Enbridge’s efforts to avoid laying off staff during these troubled times, it’s possible that the company will opt to reduce its payouts first before letting go of staff. It has increased its payout at an average compound annual growth rate of 13% over the last decade. This translates into $3.24 dividend per share on an annualized basis for 2020. 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