TSE:ENB

Enbridge (ENB.TO)

65.77
-0.38 (0.57%)
as of Oct 1, 2026, 8:00:00 pm Market Open.
2696 watching
0
PARTIAL SELL
Dividend safe? Company has dialled back dividend growth recently, so payout ratio doesn't get too high. Yield is very healthy. Fairly safe for an RRSP. Short-term risk of open-ended mainline contracting. Latest rally leaves little room for disappointment. Perhaps sell half and diversify to TRP.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The current dividend yield at 6.1%. The current payout is 77% which is a decent ratio. Investors are comfortable with ENB for its historical EBITDA margin expansion. Outlook remains quite positive. Not rapid growth but likely good growth and profitability with a solid dividend yield. Unlock Premium - Try 5i Free

COMMENT
ENB vs. TRP Nice yield, but it's paying out too much. Balance sheet is slipping. Still waiting for US acquisition to produce solid earnings. Shares running up against strong technical resistance of $37. FMV is only 15% higher. Do you hang on and wait, or sell at technical resistance? Flip a coin and choose. As for TRP, it's almost right at 2x book, which is significant technical support/resistance. Which means potential for $86 on the upside, $60 on the downside. Take that coin and flip it again. He's not trying to be cute. Sometimes share direction is in the lap of the gods. If you simply hang on, you'll be all right as you earn a dividend while you wait. Depends on your time horizon and short-term risk tolerance. If you have a long horizon, sit back and enjoy the income, and don't look at the share price every week.
PAST TOP PICK
(A Top Pick Jan 08/21, Up 35%) Really likes, own for income. Resilient business model, very strong cashflows. Still a buy.
TRADE
Received a good research report this morning. He has downgraded from sector outperform to sector perform with slow growth rate. Not buying since there are better choices in energy infrastructure space eg. Pembina, Keyera, Alta Gas.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Sales were $12.47B, which was 7% better than estimates. EPS missed but profit rose with pipeline capacity being good. Nothing noteworthy in the report, business as usual. Trading at 17x earnings which is attractive. Unlock Premium - Try 5i Free

SELL
Six months ago, he moved from ENB to CVE (but sold CVE as it got close to $20). Growing in US, but spending capital to sustain their business. An awful lot of debt. No growth plan. Market's making noises about restricting access to capital. He prefers KEY in the pipeline space, smaller with an easier business model.
PAST TOP PICK
(A Top Pick Jan 06/21, Up 33%) Good year last year, with share price and Line 3. Made a quiet, strategic acquisition of an offshore oil export facility at a good price. More cashflow coming in. Dividend north of 6%. Likes it short, medium, and long term.
BUY
ENB vs. TRP Tough call, he owns both. Quite similar, but different. Loves infrastructure, as it's impossible to build more these days. ENB is more oily, whereas TRP is more into nat gas. Both solid, dividend growers, great cashflow. TRP is more focused on renewables. Both going in that direction. Both stocks were hammered recently for different reasons, buying opportunity.
BUY
ENB vs. TRP vs. PPL Mid-stream assets are strategic, critical, long-life, and attract high valuations. His preference would be ENB or PPL, on valuation and business mix. But he wouldn't quarrel with buying TRP.
BUY
Model price of $56.41, 14% upside. Gap between dividend and earnings is closing. Likes it. Would own it here. Yield of 6.76%.
COMMENT
Likes Enbridge as company is strong. Dividend yield (7%) and valuation is reasonable. Shipping more natural gas than oil. Stable earnings and is not influenced by commodity price.
COMMENT
In response to the price of oil question, seeing oil at $30 a barrel is doubtful and in fact oil could go higher than it is today. Enbridge has a great return given its conservative approach with a 7% dividend and the safety of owning a pipeline in the oil and gas sector.
PAST TOP PICK
(A Top Pick Apr 29/21, Up 20%) Great defensive name and would buy today. Dividend yield 7%. Valuation of 10x times cash flow. Paying out 2/3 of cash flow. Will stick with this company.
HOLD

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The pipeline stock is sensitive to interest rates, which both the Fed and the BoC have announced would go up next year. The company is also influenced by oil prices partly, and this has been a bit weak recently. Unlock Premium - Try 5i Free

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