Enbridge Inc (ENB)

[Kaitlyn]

Does anyone here hold ENB? When did you get in?

I've been eyeing it for a while and if I got in when I first planned to I'd be sitting in a much better place! I am quite unsure of just how much higher it will go, although the dividend growth is certainly nice.

What do you guys think?

[Mark77]

IIRC, they mainly ship oil, not natural gas, so their position is likely to be better than TRP. I have both TRP and ENB in my ETF holdings, for around 5% of my portfolio.

The problem is, it trades at 34X trailing earnings, and nearly 4X book value. TRP is ~20X trailing earnings, ~2X book value, plus TRP is more diversified into other areas such as electrical generation.

The case for buying either company isn't too compelling. When the broader market is trading at a P/E of 10-12, and this firm is trading at 30X earnings -- ultimately you have to assess the risk/reward ratio. Not a terribly huge amount of downside, but probably not much upside going forward.

[pipolchap]

I got in over a year ago before the 2:1 split at $57.48. By far it been my best performer during this period. I'm currently reinvesting via DRIP.

I'm looking into commodities now that they've been beaten down. I wouldn't say ENB is my first choice now.

[rfdrfd]

I'd wait for price to come down to $39.12 area. Always have a stop to prevent you from losing so much.

[ccyk]

IIRC, they mainly ship oil, not natural gas, so their position is likely to be better than TRP. I have both TRP and ENB in my ETF holdings, for around 5% of my portfolio.

The problem is, it trades at 34X trailing earnings, and nearly 4X book value. TRP is ~20X trailing earnings, ~2X book value, plus TRP is more diversified into other areas such as electrical generation.

The case for buying either company isn't too compelling. When the broader market is trading at a P/E of 10-12, and this firm is trading at 30X earnings -- ultimately you have to assess the risk/reward ratio. Not a terribly huge amount of downside, but probably not much upside going forward.

it is mainly for the dividend for investors buying this stock.
if debt load is not bad, and dividend payout is sustainable, other valuation method is not that important.
BV has no meaning in my book, except for cash-like items.
I use 1/p/e to judge sustainability, it should be greater than yield
there is nothing much to worry about in this type of stock.

if you want growth, buy CVX/APA etc oil majors, currently with low p/e with comparable yield. the risk is in oil price, whereas pipelines have no major risk with oil price.