Updating Enbridge Inc., Dorel Industries Inc. and Power Corp.

Article Excerpt

ENBRIDGE INC. $39 (Toronto symbol ENB; Income-Growth Dividend Payer Portfolio, Utilities sector; Shares outstanding: 1.65 billion; Market cap: $64.4 billion; Dividend yield: 6.9%; Dividend Sustainability Rating: Highest; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada to eastern Canada and the U.S. It also distributes gas to over 2 million consumers in Ontario, Quebec, New Brunswick and New York State. Starting with the March 2018 payment, Enbridge raised its quarterly dividend by 10.0%, to $0.671 a share from $0.61. The new annual rate of $2.684 yields a high 6.9%. U.S. regulators recently eliminated a tax break for pipeline operators. That will hurt Enbridge, which controls its U.S. pipelines through two affiliates: its 75.0%-owned Spectra Energy Partners LP (New York symbol SEP), and its 34.6%-owned Enbridge Energy Partners LP (New York symbol EEP). The tax changes will have little impact on Spectra. However, it will cut Enbridge Energy Partners’ cash flow by $60 million in 2018. Even so, the parent company still plans to…

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