It was just announced yesterday that Enbridge(ENB) has won a judge ruling in Minnesota on a key permit for their Line 3 pipeline. That is wonderful news for an industry that has been decimated since Covid-19. Although this is great news, Enbridge still has a short list of permits they need to keep this thing moving. Their next permit will be decided on in mid November which is a water quality permit. That one is a big one and I will for sure be keeping my eyes out for it because they will probably get a boost if they get it(fingers crossed).
I feel that Enbridge is the best bet right now for any type of investment in the oil and gas sector. Much like everyone else they took the big March hit but have been slowly and surely working their way back up. The last 2 quarters for them have actually been positive beating expectations in Q2 by 11% and in Q3 by 3%. This is not an easy thing to do considering what has been happening. But, could it be because they are becoming more diversified? It could also be because they have cut over $300 Million in costs so far in 2020 including company-wide salary roll backs, voluntary retirement programs and outsider services and supply chain costs. I feel like this company is doing what needs to be done to be successful and what needs to be done for the investors.
Enbridge is only 1 of 2 oil and gas companies I am invested in and I really feel that they are set up to last through this recession and global pandemic. They announced that they are spending $1 Billion annual in renewable growth opportunities. This also means that I am invest in 2 renewable companies as well. Everyone is always saying that since oil and gas companies make so much money why don’t they invested in renewable also? Well, that is exactly what they are doing. They currently have over 30 renewable facilities around the world up and running with a net generation of 1.8GW. These are just a few reasons why I will continue to invest in Enbridge and am holding them long term in my RRSP. Lets take a look at their numbers.
Enbridge(ENB)-$38.86CAD/Share, $78.7 Billion Market Cap, 2.63 EPS, 15.3 P/E(forward), Dividend Yield of 8.34%($3.24/Share) and a Dividend Payout Ratio of 329%.
*Disclaimer, all share prices are after market close as of trading day October 16, 2020. I currently hold a position in Enbridge.
That is all for today and remember everyone, invest in yourself first.