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Enbridge: The Triple Threat Of Energy Infrastructure

Nov. 02, 2021 8:30 AM ETEnbridge Inc. (ENB), ENB:CA128 Comments
Steven Fiorillo profile picture
Steven Fiorillo


  • Enbridge is becoming the most complete energy infrastructure company with its latest acquisition as it will now operate an extensive pipeline and storage business, utility company, renewable segment, and exporting.
  • Enbridge has one of the best high-yielding dividends as they have rewarded shareholders with 26 years of consecutive growth with a 10% compound annual growth rate while yielding 6.38%.
  • The global demand for energy is expected to increase and Enbridge will play a vital role in delivering sustainable energy domestically and globally.

Enbridge head office building in Toronto.

JHVEPhoto/iStock Editorial via Getty Images

Traditional energy companies aren't exciting even though crude and natural gas are at levels some thought we would never see again. In modern society, energy is essential to life, and the demand for sustainable energy will never

This article was written by

Steven Fiorillo profile picture
I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking Alpha or https://dividendincomestreams.substack.com/

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ENB, ET either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. Investors should conduct their own research before investing to see if the companies discussed in this article fits into their portfolio parameters

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (128)

autofocus111 profile picture
What does ENB do with the crude oil export infrastructure they recently acquired if the US government re-institutes a ban on oil exports? Would connecting the terminal up to Canadian-sourced crude (which is presumably exempt from such an order) be a viable option? I'm guessing reconfiguration to export refined products is difficult/impossible. What seemed like an excellent move just a short while ago could end up being a stranded asset. Ouch.

@Steven Fiorillo So how much debt do they really have? I've watched these guys for a long time and the debt scares me off. Yahoo shows ~$71B whereas their MC is ~$87B.
No Identity profile picture
Then why is Brandon looking into closing line5 in Michigan. Lets go Brandon
Douglas Payne profile picture
@No Identity .. I MUST HAVE SOLD SENIOR FRIENDS A DOZEN Tee-SHIRTS on Ebay this weekend at the MALL.
atpalpha profile picture
@No Identity ENB can solve this problem by making Russians a minority owner in Line 5, thus allowing Brandon, through is crackhead son, to extract a kickback at which time Line 5 will get the green light, similar to the lifting of sanctions regarding the Russian gas line into Germany. See - it's really not that complicated! LGB
Douglas Payne profile picture
@atpalpha .. WHITE HOUSE STAFFERS likely have taken your idea to heart and will make sure that Hunter has it on his doorstep as a note to call BRANDON when he wakes later this day~!!
Cheese Head profile picture
Small bit of news subsequent to article "Enbridge next focused on adding crude capacity, connections to Texas Gulf Coast": www.hellenicshippingnews.com/...
autofocus111 profile picture
TRP is a beast too. More heavily weighted to natgas with renewable segment focused on nuclear power. TRP is also seeking to implement CO2 capture systems in the tarsands and build out H2 infrastructure. The total returns of the two are comparable over the last two decades. I own both, as well as a smaller position in PBA.

TRP.CA ENB.CA Growth of $10,000.00 With Dividends Reinvested
Start date: 01/02/2001 01/02/2001
End date: 11/05/2021 11/05/2021
Start price/share: $17.25 $10.58
End price/share: $64.05 $53.88
Starting shares: 579.71 945.18
Ending shares: 1,407.80 2,143.66
Dividends reinvested/share: $38.21 $28.36
Total return: 801.70% 1,055.00%
Average Annual Total Return: 11.12% 12.45%
Starting investment: $10,000.00 $10,000.00
Ending investment: $90,128.50 $115,507.30
Years: 20.85 20.85

DerekCheung profile picture
Amazing 3q results! Long enb
Your USA oil production number is too high. Oil production averaged 11.3 million bpd in 2020.
Excellent view of ENB's businesses. Well written!
Dividend Pro profile picture
Listen up guys! The author is right about ENB> the 2nd best pipeline in North America. (you will just have to figure out who #1 is yourself, and probably not who you think it is).

Very long ENB, and have been for years. OK growth, with stellar yield and DGR.

Very very long #1 and #2 ENB.
Philip3 profile picture
@Dividend Pro You've been spending too much time reading MSM. "You'll never guess..." Why not just tell us.
wigan4 profile picture
@Philip3 Well, you know he's just dying for someone to take a guess so he can hammer them. So I'll do him and everybody else a favor and say I've always considered EPD and MMP the two best pipelines. Then he can call me an idiot and everybody will get his recommendation.
Steven Fiorillo profile picture
@Dividend Pro Thanks for reading and commenting.

As far as best it really depends on what you're defining the criteria for.

I will say that my favorites are the following and not in any particular order:


From a dividend standpoint EPD is currently the best of the four
Well written and comprehensive analysis, and a headline to grab one's attention, good work.

Glad others have clarified ENB does not involve a K-1. (That should be in all contributors' MLP reports, since inevitably that question gets asked. )

Still confused about the dividends though. Are they paid in Canadian dollars, so you get 20% less due to the Canadian exchange rate? And also to clarify, if you hold in an IRA, there is no Canadian tax withheld?
@RealRural, yes dividends are paid $C but you buy the stock with $US so you get more stock. SA shows the yield in $US. Your future yield will vary depending on exchange rate of course. I hold it in a Roth at TDA and pay no tax withholdings, however some brokerages are too lazy to do the proper paperwork for you and do withhold taxes, check with your broker first.
Steven Fiorillo profile picture
@RealRural Thanks for reading and commenting I appreciate it
@RD1300 If your bank is converting dividend to US$ arn’t u also paying the exchange fee?
Another way to buy Enbridge is ENS traded on the TSX. ENS has a 10.2% dividend, paid monthly.
Douglas Payne profile picture
@Robert in Vancouver ... Good one, must have met my wife... " emphasis has been placed on lowering omissions"
Philip3 profile picture
Hi Robert, can't find a ticker on SA. Could you pls provide? Interested to see how they finance the delta between 6 and 10%
bpither profile picture
@Philip3 it's listed on the TSE as a fund managed by the Middlefield Group. Syllabus here -
nm10066 profile picture
@Steven Fiorillo Just an outstanding practical analysis of ENB. I must admit I was really upset when ENB bought out my largest holding, Spectra Energy, a few years ago. SE was the best dry gas pipeline company in the country. They were the number one supplier of natural gas to the utility companies using natural gas to supply electricity in the US. And while I still believe SE management sold out to cheap, it probably turned out to be a good thing in the long run. Since I owned SE in my taxable account I got a Canadian withholding tax and a dividend paid in Canadian dollars, about a 21-25% reduction. When my SE holdings were bought out I was left with 19000 shares of ENB. I regret now I sold 9000 of those shares. That was a mistake. ENB has kept faith with the share holders and grown the dividend. With the climate in this country now and inflation heating up its good to have a hedge in Canadian currency and the Canadian withholding tax is fully recouped with a treaty we have with Canada in the form of a 100% tax credit. I still have 10,000 shares of ENB which I ended to keep. Thanks for your wonderful hard work on this article.
DerekCheung profile picture
@nm10066 10K shares in ENB is incredible. Great job in building such a large position. ENB is my largest holding with 10% allocation and another 3.5% in ENS (which is like a turbo charged ENB at 10% yield)
Steven Fiorillo profile picture
@nm10066 Thanks for reading and commenting. I really appreciate it.
Bikerron1 profile picture
What about KMI. seems to be not able to get off it 16 to 18 range?
PS Like your work, I follow what you have to say.
@Bikerron1 KMI is a broken co. Stay away.
@Bikerron1 KMI is a dog! Dead money for sure!
Steven Fiorillo profile picture
@Bikerron1 Thanks for reading and commenting. I really like KMI and need to read through the quarter.
Respect the Game profile picture
Good article thx.

I like ENB’s well balanced approach to our future energy needs.

long ENB should be added more soon

Steven Fiorillo profile picture
@Respect the Game Thanks for reading and commenting
Retire2020 profile picture
The 6.38% yield will be much lower after the Canadian government took its bite.
Booban profile picture
@Retire2020 are you talking about withholding taxes? You don’t get taxed twice though. Do you? I thought there were tax treaties. Anyways, buy when CND is weak! Maybe makes up for it.
For USA based investors there is no tax withholding on shares in retirement accounts.
Retire2020 profile picture
@Booban Not sure. ENB is in my taxable account. Every time when a divvy is paid there's another line that says "Foreign Tax Paid" with a negative value.
Enjoyed reading your article. I drive by head office on Consumers rd and smile every time. Long ENB.
fintax profile picture
Adding more as I speak....
Steven Fiorillo profile picture
@fintax I think that’s a wise move
Great article! I love ENB as an income and long play. I would love to see your analysis and thoughts about SPH @Steven Fiorillo. I haven't invested into them yet, but they seem like a solid company with a great dividend from everything that I've researched.
Steven Fiorillo profile picture
@baggett.brad Thanks for reading and commenting I appreciate it. SPH? I will look into them
I'm not sure fossil fuel consumption will go up as much as EIA predicts over the next 30 years.

For sure, the demand will there.

But what about supply?

Even if there is enough oil to recover with an EROEI of greater than 1, at what price would it be economical?

Baloney Sandwitch profile picture
A year ago pipelines were dead. Now everyone is panting after them. Don't tell me what is hot, tell me what is not.
Steven Fiorillo profile picture
@Baloney Sandwitch Thanks for reading and commenting, If you go back to my published articles I have been writing about ENB, ET, EPD and KMI for years
Baloney Sandwitch profile picture
@Steven Fiorillo Appreciate your kind response. Good time to buy ENB is price to OCF < 10. i.imgur.com/...
Secret Recipe profile picture
@Steven Fiorillo Loved the articles on these 4 companies; you should follow up your research with the ubiquitous MMP. Thanks
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