Topic: How To Invest

Dividend Advisor Hotline – Friday, December 13, 2019

Article Excerpt

ENBRIDGE INC., $50.57, Toronto symbol ENB, is now a buy. The company operates pipelines that pump oil and natural gas from Western Canada to eastern Canada and the U.S. It also distributes gas to consumers in Ontario and Quebec. Starting with the March 2020 payment, Enbridge will increase your quarterly dividend by 9.8%. Investors will then receive $0.81 a share instead of $0.738. The new annual rate of $3.24 gives investors a very high yield of 6.4%. That higher dividend looks sustainable. That’s because the company has now completed a three-year plan to simplify and streamline its operations following its February 2017 purchase of Spectra Energy for $37 billion in stock (that’s equal to 36% of Enbridge’s current $102.0 billion market cap). That firm operates crude oil and natural gas pipelines in the U.S. and Canada. Enbridge’s plan mainly included selling $8 billion of its less-important assets and buying full control of four affiliated firms that operate various pipelines. Thanks to those moves, as well…

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