Is Enbridge’s 7.2% Yield Too Good to Be True?

Here is the article.

I like to review those financial numbers. I like to purchase $9000 Canada dollars on ENB.TO stock in short future.


In December, the company raised its dividend payments by 9.8%, from $0.738 to $0.81. With the stock trading around $45 per share, that works out to an annual yield of about 7.2% per year.

The company released its quarterly earnings earlier this month which showed Enbridge incurring a net loss of $1.3 billion for the three months ending March 31. The loss was mainly the result of a $1.7 billion write-down of an equity investment.

Operating revenues declined 7% from the prior-year quarter and operating income was down 42%. However, the positive was that the company generated $2.8 billion from its operating activities and even after capital expenditures of $1.1 billion, Enbridge would’ve had free cash left over to pay its common share dividends, which totalled $1.7 billion.

But there’s not a whole lot of buffer there should things get worse. The company still has $63.6 billion in long-term debt on its books and $10.5 billion of other long-term liabilities that it needs to pay down.