I’ve been looking closely at Enbridge lately as a potential long-term investment. I’m interested in building a portfolio of established Canadian blue-chip dividend stocks that I can hold for 20–30 years. Enbridge caught my attention because of its dividend history, strong pipeline business and relatively attractive yield compared with some other Canadian blue chips. However, I’m wondering whether it’s actually a good entry point right now or if the stock is still fairly valued or even overpriced. I’d love to hear opinions from investors who follow Enbridge closely. I’m particularly interested in hearing both bullish and bearish arguments. I’d rather understand the risks before committing significant money. Thanks! $ENB
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18 Comments
Chris Pember@goldengriddle · 3d
I said earlier that if it dropped down to $60, I would back up the truck. And I still will. But then I bought more shares when it was around $65. I think its going sideways for a while longer. But if it does fall to $60, I definitely will fill the boots.
Le Corb@lecorb · 2d
The current dividend is 30% lower than its historical average, meaning the stock price is on the higher side of valuation. I own thousands of shares of ENB, and it’s my biggest concern is their debt. I listen to their earnings call and they never talk about reducing their debt. Feels like they’ve become the next BCE. However, gas consumption next year is expected to rise 50%! So demand is growing exponentially because of gas turbines. ENB is a critically important infrastructure, now recognized more than ever as a result of the Iran war, so historical P/E I suppose is no longer relevant, who knows. But my father-in-law has 1,000 shares originally bought at $6! So this proxy bond has paid handsomely for 30 years and appreciated 1,000%! Something a bond can never do.
Kyle Jones
@investwithkyle · 3d
I’ve only gained 59% in 5 years. If you’re expecting rule of 7 then got 2 years to gain 40%. Not a terrible return but I think there is better. I like utilities because everyone needs to heat their home. Down fall is Canada wanting to reduce carbon footprint and really pushing heat pumps. Also raising taxes constantly on nat gas
Dashnor Hasku@cankos · 3d
I think Enbridge is a screaming buy! Good dividend and nice pullback so it’s a great entry point!
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