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

  • Last Updated:
  • Mar 26th, 2024 12:51 pm
Member
Jul 20, 2019
239 posts
132 upvotes
ENB is solid... income is guranteed and div is safe.

But investors are just not buying anything related to oil
Newbie
Oct 20, 2018
34 posts
13 upvotes
Ugh.. the bleeding on this won’t stop. I’ve got time to ride it out but seeing this down so much sure is disheartening.
Deal Addict
Mar 22, 2010
4133 posts
2172 upvotes
Added more here. Not worried a bit. Solid dividend and this is 15 years+ holding stock.
Deal Addict
Jan 3, 2013
2807 posts
1152 upvotes
Sidney
"Is Enbridge Inc (ENB) stock a good time to buy now?"

Well...let's see. Feb 2018 stock price....$45CDN and plummeting. Now, its $39CDN....so no, it wasn't a good time to buy, LOL. Unless your goal was to lose money.
Deal Addict
Nov 30, 2006
2385 posts
274 upvotes
favelle75 wrote: "Is Enbridge Inc (ENB) stock a good time to buy now?"

Well...let's see. Feb 2018 stock price....$45CDN and plummeting. Now, its $39CDN....so no, it wasn't a good time to buy, LOL. Unless your goal was to lose money.
That's not a fair assessment. If you reinvest dividends your ACB would be lower. It's all about timeframes.
Deal Guru
User avatar
Jun 1, 2006
12700 posts
15951 upvotes
favelle75 wrote: "Is Enbridge Inc (ENB) stock a good time to buy now?"

Well...let's see. Feb 2018 stock price....$45CDN and plummeting. Now, its $39CDN....so no, it wasn't a good time to buy, LOL. Unless your goal was to lose money.
Sure, its great for people who bought Enbridge under $40, but how about those that bought when the price was in the $40's? I bought 3000 shares just a month ago at $43. If I have kept them, my loss would be $12,000, which is more than the annual dividend of $9720. I cut some of the losses and sold at $41. Worst case scenario if it drops another $10, I would be out $30,000, which would take a long time for dividends to make up the losses.
Have a nice day!


Deal Addict
Feb 26, 2017
2902 posts
4581 upvotes
favelle75 wrote: "Is Enbridge Inc (ENB) stock a good time to buy now?"

Well...let's see. Feb 2018 stock price....$45CDN and plummeting. Now, its $39CDN....so no, it wasn't a good time to buy, LOL. Unless your goal was to lose money.
I don't think 'only buy stocks that go up' is a realistic strategy :).
Deal Guru
Aug 17, 2008
10990 posts
13540 upvotes
TRP div yield just below 5.8% for comp.

TC Energy layoffs add to oil patch woes amid low demand - Globe and Mail email.

"Calgary-based TC Energy Corp. has laid off line workers and managers in its natural gas division as the industry continues to shed jobs in the face of low demand and declining revenues as a result of the pandemic.

TC Energy would not provide the number of employees affected, but said in an e-mail its Canadian gas operations and projects team is being restructured. The move is the latest in a series of job and capital expenditure cuts in the energy sector as companies try to protect their bottom lines."
Answer not a fool according to his folly, lest thou also be like unto him = Never argue with an idiot, they'll only bring you down to their level & beat you with experience
Deal Addict
Dec 3, 2014
2348 posts
1840 upvotes
Ontario
I recently purchased ENB for just under $40.00 per share. I did not purchase it with a view to seeing significant appreciation in share price, but I do think it is undervalued. My investment goal with it was to collect the 8% dividend and also see a little bit of share price appreciation. A 10% CAGR seems very viable.

There is no doubt that ENB is facing pressure in light of its link to the oil industry, but from what I understand it is about 1/2 natural gas and there are plans to expand into renewable energy in Europe. There will likely be difficulty in building NEW pipelines. This is a blessing and a curse. It does mean that ENB will have trouble expanding its pipeline business, but ironically it also creates a moat because it means competitors are prevented from building pipelines to compete with ENB. Meanwhile there remains no better alternative to moving oil and natural gas. Natural gas does not face the same pressure as oil and as stated this is a huge part of ENB's business. And on the oil front, while it is an issue on a long term basis, the fact is that oil consumption and demand remain high at this time and will for the foreseeable future. Electric cars on the road only represent about 2% of current vehicles, so while electric cars may eventually pose a real risk to ENB, it does not pose any significant threat to ENB on either a short or medium term basis.

In sum, I think ENB is a very worthwhile investment below $40/share.
Deal Addict
Jan 31, 2016
2297 posts
2777 upvotes
Toronto, ON
sleepyguy wrote: ENB is my 3rd largest holding in my portfolio... Avg cost is a bit above $40... Any dips anywhere $37-38 I'll be adding more.
It's getting there. Time to buy?
Deal Addict
User avatar
May 31, 2018
1207 posts
3038 upvotes
SK
ENB is our largest single holding (5% of portfolio) with the greatest unrealized loss (-20%) currently. Don’t really want to add to it to average down, nor sell for a loss to put the funds somewhere potentially more productive/less stressful. Guess we’re just along for the ride as long as the dividend doesn’t get cut. Here’s hoping for a long cold winter with lots of natural gas usage.
Deal Addict
Sep 2, 2009
2978 posts
3020 upvotes
Ottawa
llpresident wrote: Electric cars on the road only represent about 2% of current vehicles, so while electric cars may eventually pose a real risk to ENB, it does not pose any significant threat to ENB on either a short or medium term basis.

In sum, I think ENB is a very worthwhile investment below $40/share.
I agree and think that the total number of cars has to be looked at alongside of the percentage. We are considering a second car which could be electric *but* we would still have our ICE (that is to say, the percent of electric may go up, but the # of gas may not go down).
Deal Addict
Dec 28, 2007
1567 posts
1264 upvotes
Also think about how the electricity for these electric cars is going to be produced. Seems a lot of coal power plants are being replaced with or converted to gas-powered plants.
Deal Addict
Oct 25, 2009
1165 posts
1753 upvotes
Market is really not giving them any credit for renewable energy vector... might be a good setup for a short term trade, hmmmm
Deal Addict
User avatar
Oct 14, 2015
2116 posts
2515 upvotes
JUnit wrote: Also think about how the electricity for these electric cars is going to be produced. Seems a lot of coal power plants are being replaced with or converted to gas-powered plants.
No problem; it's my understanding that EVs can be plugged into any Environmentalist. :)
Deal Addict
Mar 22, 2010
4133 posts
2172 upvotes
dpwr wrote: Market is really not giving them any credit for renewable energy vector... might be a good setup for a short term trade, hmmmm
With all due respect, ENB is not suitable for short term trade. They are many other that you can ride short term for better risk/reward. This name is mainly played for dividends.
Deal Addict
Dec 3, 2014
2348 posts
1840 upvotes
Ontario
JUnit wrote: Also think about how the electricity for these electric cars is going to be produced. Seems a lot of coal power plants are being replaced with or converted to gas-powered plants.
Michael Moore of all people directed a documentary this year exposing the truth behind ESG which often is more about virtue signalling then substance. For example, things like solar and wind have massive energy traditional inputs to produce. The amount of mining and manufacturing required to build solar panels and wind turbines is enormous.

And they don’t last forever. When they break and require replacement you are repeating that mining and manufacturing process all over again and the device being replaced ends up in the dump.

In many cases the same companies that are vilified as being polluters and anti environmental are major shareholders or outright own the new ESG companies that are coming to the rescue.
Member
Dec 26, 2011
411 posts
150 upvotes
Ottawa
Bought more today also. As long as Canadian winters stay cold, ENB is a solid addition to any portfolio.
Sr. Member
User avatar
Oct 12, 2009
658 posts
388 upvotes
I wish I could add more but have to wait for January 1st for more contribution room. $38 is such a great price. I'm averaging around $42
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