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Enbridge (ENB) Raises 2019 Dividend, Maintains DCF Guidance

Enbridge Inc ENB recently received authorization from the board of directors to hike its quarterly dividend for 2019.

The new dividend of 73.8 Canadian cents — expected to be paid on Mar 1, 2019 to stockholders of record as of Feb 15, 2019 — reflects a sequential hike of 10%. In fact, the latest hike will mark 2019 as the 24th year that the leading midstream energy infrastructure provider has been successively increasing dividends.

Along with the news of dividend increment, Enbridge announced that it has reaffirmed its distributable cash flow (DCF) per share for 2018 at the top end of its projected guidance of C$4.15 to C$4.45. The company also reiterated its projection for DCFs per share through 2020 since 2018. Notably, Enbridge continues to expect DCFs per share for 2019 and 2020 at C$4.45 and C$5.00, respectively. Post 2020, the midstream energy player is expecting to grow its annual per share DCFs by 5% to 7%.

Success on this front reflectsEnbridge’s efforts in strengthening overall businesses by shedding non-core assets and adding profitable growth projects — fresh investments of C$1.8 billion in businesses in liquids Pipelines and transmission of gas — to its existing backlog.

In other words, Enbridge’s strong discipline of reducing debt burden by getting rid of assets – not fitting in the business, simplifying corporate structure and focusing on organic growth projects will help it to continue rewarding shareholders.

Enbridge Inc Price


Enbridge Inc Price | Enbridge Inc Quote

Headquartered in Calgary, Alberta, Enbridge currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include TC PipeLines, LP TCP, Cabot Oil & Gas Corporation COG and Unit Corporation UNT. All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

TC PipeLines beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 15.6%.

Cabot will likely post earnings growth of 113.2% and 59.9% through 2018 and 2019, respectively.

Unit Corporation surpassed the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 21.3%.

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