Enbridge Going South Again

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Any specific reason this is constantly dropping in recent past.
Is it a good time to add more of these in the portfolio.
How is today’s price valuation of this share?

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Asked on December 9, 2021 12:02 pm
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Hey there,

Enbridge is a solid company - one of the best pipelines in the country. That being said, the macro events around pipelines still make for a difficult environment. I think many also got caught off guard with the lower than anticipated dividend raise. The good news is that the company is expecting 10% DCF growth next year, so we should see a higher raise in 2022. Long term, they re-iterated 5-7% DCG growth so in theory, the dividend should grow inline wiht that.

ENB (much like TRP) are not high growth companies. They are more income plays than anything. It is also worth noting, that Enbridge is actually have a really, really good year. The stock is up 26% YTD, which is fantastic for a company like Enbridge. So recent weakness could simply be normal consolidation. The company is slightly undervalue to fairly valued here, so IMO not a bad pickup at these levels.

Don't expect 26% growth next year, but solid, mid-to-high single digit share price appreciation with a rock solid 7.15% dividend can lead to total returns in the teens. Absolutely nothing wrong with that.

Mat

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Posted by Mathieu Litalien
Answered on December 13, 2021 2:07 pm
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https://www.fool.com/investing/2021/12/11/our-favorite-energy-stock-picks-for-2022-and-beyon/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

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Posted by Kannan Krishnaswamy
Answered on December 11, 2021 5:38 pm