Keep in mind, Enbridge is still trading well below pre-covid levels. It's sitting at around $42 a share, whereas in early March it was in the $52 range.
Enbridge very often gets labelled as a company thats due for a dividend cut, because payout ratios are so high. But the fact is, the company has raised dividends for 2 and a half decades. Yes, payout ratios in terms of earnings are high, but they account for only 65% of operating cash flows.
Enbridge is a foundational stock here at Stocktrades for 2020. I'm fairly bearish on the oil and gas sector, but if I were to pick one stock to own, it would probably be Enbridge. A very close second? TC Energy.
Right now, I currently own TC Energy, Enbridge, Suncor and Canadian Natural Resources. I plan to part ways with the producers (I MIGHT keep Canadian Natural) and lower my total allocation towards the sector. But, Enbridge will be one that remains in my portfolio for a long time, unless something drastic changes.
It will be very interesting to see how the company goes about its dividend right now. One thing we can more than likely expect though is a little slower dividend growth rate than its current 10%.