Following year-over-year dividend growth, income investors have a reason to pay attention to Enbridge Inc. (TSE:ENB). Apart from the 5.83% dividend yield, there’s more to Enbridge that should prompt you to buy the stock, or stick around if you already own some shares. Enbridge Inc. (TSE:ENB) has passed the metrics for determining a good dividend stock that delivers both greatness and safety. It’s, therefore, a sure bet for investors seeking lucrative returns in the long-term.
Let’s see how Enbridge stacks up.
Strong Dividend Payout History
If you’re planning to get high returns in the future, high dividend yields should be the center of interest. However, there’s more to a great dividend stock than just the yield. The best dividend stock is one that has a long track record of dividend payment, and that’s why Enbridge Inc. (TSE:ENB) outshines its peers in this segment.
For more than two decades now, Enbridge continues to pay dividends to its shareholders with an average compound annual growth rate of 12.1% over the past 20 years. In December 2018, the company announced a 10% increase to its dividend per share amounting to a quarterly dividend of $0.738, which translates to a $2.952 annualized dividend per share in 2019. The company now looks forward to the annual dividend growth of 10% through 2020 based on its growth prospects.
Strong Growth Prospects
From the look of things, Enbridge Inc. (TSE:ENB) isn’t going to stop at the 5.83% yield. The company’s three-year strategic expansion plan is quite promising, and, therefore, shareholders should look forward to higher yields.
The pipeline giant expects to grow its cash flow per share by a 10% annual rate in the coming year, which is likely result in a rise in its dividend yield. It also expects to exceed its earnings forecasts for 2020 based on its expansion projects that will see its cash flow grow by at least 5% per year after 2020. This shows that the company can comfortably sustain the expected yearly growth in its dividend. As such, you’re safe investing in Enbridge Inc. (TSE:ENB) if you’d like to build stable, high returns.
Enbridge Inc. is a Canada-based energy transportation and distribution company. The Company is engaged in delivering energy. It operates through five segments: Liquids Pipelines, Gas Distribution, Gas Pipelines and Processing, Green Power and Transmission, and Energy Services. The company is currently valued at $102.84 billion with a revenue of $32.9 billion.