Is Enbridge Inc (ENB) stock a good time to buy now?

Should it be held in RRSP or margin account?

Might be better in tfsa since growth and dividend won't be taxed.

Any sheltered account will do - ie TFSA, RRSP...

As for timing, it really depends on your time horizon. In an increasing interest rate environment (that we have now), as rates go up, utilities like pipelines go down. So, it's likely that lower prices are in the future. However, if you are buying for the long term (ie 20 years), then it's not a bad time to start a position as ENB has a good history of moving up in the long term and the dividend rate is pretty good.

Dollar cost averaging on ENB is always great plus management is focused on dividend growth. ENF is also great with DRIP feature and high yield.

Yes.

If you are going to buy and hold, it makes most sense in TFSA and then Margin account. Remember the capital gains and dividends receive preferential tax treatment in margin account. For RRSP, I like to buy stocks that frequently return their capital or pay income distributions (e.g. BEP.UN, BIP.UN).

canoek wrote: ↑ Should it be held in RRSP or margin account?

OP, consider a 50/50 in ENB & ENF

Thanks. It seems like ENF has even higher dividend pay out % than ENB. I wonder if I should set it up as DRIP. Anyway, going to call TD Web broker to setup the DRIP option in general. I wonder why TD doesn't put DRIP option as default, and wants us to call in to add it on instead.

Message from TD:

A Dividend Reinvestment Plan (DRIP) allows you to purchase additional shares or mutual fund units automatically from the cash dividends paid on eligible securities, without incurring commission costs. TD Direct Investing handles everything directly for you — from dividend collection to reinvestment and safekeeping.

To set up a DRIP in your TD Direct Investing account, contact an Investment Representative:

1-800-465-5463 or (416) 982-7686
24 hours a day, 7 days a week

porticoman wrote: ↑ OP, consider a 50/50 in ENB & ENF

rdx wrote: ↑ Thanks. It seems like ENF has even higher dividend pay out % than ENB.

blended dividends at present ENF 8.175%, ENB 6.3% = 14.475/2 = 7.2375% approx

look at it that one is growth & the other as income, which inside a registered account its basically let it ride, DRIP for the long haul

Good luck with this

porticoman wrote: ↑ look at it that one is growth & the other as income, which inside a registered account its basically let it ride, DRIP for the long haul

Good luck with this

I see. Thanks. I notice both ENB and ENF are still going down a bit in the last couple days. I wonder if I should wait and buy it later just before the RRSP deadline.

rdx wrote: ↑ I see. Thanks. I notice both ENB and ENF are still going down a bit in the last couple days. I wonder if I should wait and buy it later just before the RRSP deadline.

do it Friday, Monday or next week it really doesn't matter considering at close today the blended dividends at present ENF 8.175%, ENB 6.3% = 14.475/2 = 7.2375% approx

porticoman wrote: ↑ do it Friday, Monday or next week it really doesn't matter considering at close today the blended dividends at present ENF 8.175%, ENB 6.3% = 14.475/2 = 7.2375% approx

Ok, thanks again.

By the way, do you research on Chinese company's stock ? If so, any comment on the China Mobile LTD (CHL) ? Its price is currently 3 years low. With 5G coming to China soon, will it be good company to invest on ?

I just called TD and inquire about the DRIP account setup. Here is the information in case someone has the same question. I originally thought it is an one time setup with my account and I will have an option in the TD Web Broker to select "DRIP" for future stock purchases. However, based on what TD told me, I need to buy the stocks first and tell them which one I want to setup DRIP or they can also setup the entire investment account with DRIP option.

This will get hammered with rising interest rates. PE still too high and debt load is a ticking time bomb potentially. Good entry would be in low 30's

Yes, most utility/teclo and other dividend stocks are getting hit with the increased of inflation, and the resulting inflation.

A bigger risk for me with ENB is that oil is not a great long term investment. Maybe in 20 years (when I want to sell mine), pipelines are no longer very useful.

Interesting point. What makes you think pipelines will not be useful in 20 years?

Bullseye wrote: ↑ Yes, most utility/teclo and other dividend stocks are getting hit with the increased of inflation, and the resulting inflation.

A bigger risk for me with ENB is that oil is not a great long term investment. Maybe in 20 years (when I want to sell mine), pipelines are no longer very useful.

It's a general consensus from BNN analysts that this will continue to decline into the summer. Issue with ENB is that growth potential isn't really there. So you may get the dividend in the mid 6%'s but the share price is unlikely to grow in the short and intermediate term.

Personally, I'm opting to look for an entry into a company with growth potential and a (smaller) dividend. But will consider ENB again in the mid 30's.

ruchir wrote: ↑ Interesting point. What makes you think pipelines will not be useful in 20 years?

Electric cars, solar and wind farms.

In the long term, the move to electric cars concerns me as well (I think its still about 10-15 years away from effecting demand for oil).

The other side is that electric cars are going to need to get their power from somewhere. A lot of that will come from natural gas which ENB has a lot of pipelines for. I can see Natural Gas replacing a lot of the coal plants due to its lower cost.