Enbridge

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Hello,

I see that you took Enbridge off of your Foundation Stocks list.

Would you explain your reasoning in more details? I’m long on the stock.
Also, where do you see the company in the long term? As well as potential dividend growth approximations?

Thank you

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Asked on March 11, 2021 2:21 pm
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Private answer

Hey there,

No reason other than at the time, we felt TRP provided better value. Furthermore TRP was poised to have a higher dividend growth rate this coming year. I still own ENB and have no intentions of selling, it remains a best-in-class pipeline. Both make for excellent Foundational stocks.

Dividend growth over the next few years is expected to track distributable cash flow (DCF) growth. Since DCF is expected to be in the range of 4-5% over the next few years, you can expect that level of dividend growth out of Enbridge.

Overall, I'd expect mid-to-high single digit growth over the long term, coupled with mid-single digit dividend growth. As mentioned, I own it and intend on keeping it for at least the next decade.

Mat

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Posted by Mathieu Litalien
Answered on March 11, 2021 7:20 pm
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