However, recent moves announced by the company suggest that management is looking for ways to cut costs, which could mean a possible dividend cut could be on the horizon. Stocks. But at over 8%, it’s glaring. In fact, there are plenty of high-yield stocks that have cut their payouts before. Enbridge has paid a dividend every year for 65 years. How can Enbridge (NYSE:ENB) sustain its dividend payment? Special ‘Tax Credit’ Stocks Revealed in FREE New Report. Here's why Enbridge Inc (TSE:ENB) might cut its dividend payment. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. One stock that’s been quiet about its dividend has been Enbridge Inc (TSX:ENB)(NYSE:ENB). And given the direction of the industry, it’s hard to envision … We should also look at the company’s dividend history. Shareholders of record on Friday, February 12th will be paid a dividend of 0.835 per share on Monday, March 1st. Is it safe? Dec. 4, 2020 5:58 AM ET | | About: Enbridge Inc. (ENB) by: The Dividend Guy. A look at Enbridge Inc (TSE:ENB)’s dividend cover. Should you pursue your analysis, this video will bring you more insights. The 25-year mark is especially significant to dividend investors, as that’s when stocks are considered to be Dividend Aristocrats. Final Thought. Enbridge’s dividend has normally been over 5%, and so it’s normally been a high-paying dividend stock. We should also look at the company’s dividend history. However, it’s conceivable that it may play a role in the company’s decision-making process. The risk of Enbridge cutting its dividend in the long run is extremely low. In December 2019, we announced a 9.8% increase to our dividend per share, increasing the quarterly dividend to $0.810. CALGARY -- Enbridge Inc. is raising its dividend by nearly 10 per cent. Enbridge stock has been a solid wealth creator. Show full articles without "Continue Reading" button for {0} hours. Eventually, the company was not able to issue new debt and the dividend was cut. On an annual basis, that yields more than 8% per year. Enbridge avoids layoffs, but… On June 17, Enbridge announced that close to 800 employees took leaves of absence, moved to part-time, or accepted early retirement packages. With a high yield and a poor outlook for the industry, it was likely an unavoidable decision for the company. which shouldn’t come as much of a surprise to investors, A Weak Canadian Dollar Could Make These 3 Stocks Skyrocket, Why Enbridge Stock Price Lagged the TSX by 1.7% in March, TSX Stocks: 2 Canadian Heavyweights Yielding 8%. I don’t forecast any dividend cut at this point. A sustained distribution/dividend that has never been cut; Dividend/Distribution History. Prior to 2011, investors received a taxable distribution directly from the Fund. When Enbridge announced it was increasing its dividend payments in December, it marked the 25th year in a row that the company hiked its dividend payments. It would be disappointing for the company to have just reached that milestone and only months later have to suspend or reduce the dividend. Dividend cover is perhaps the most widely interpreted dividend health metric. The pipeline company says it will start paying a quarterly dividend of 81 cents, effective March 1, up from its previous rate of 73.8 cents. Seeking Alpha . That makes a dividend cut all the more likely to happen — the only question at this point is when. An unusually high payout ratio of 305% of its profit suggests something is happening other than the usual distribution of profits to shareholders. Enbridge Inc (ENB) will begin trading ex-dividend on August 13, 2020. Enbridge offers a unique value proposition that brings together a combination of transparent growth, a reliable, low-risk business model and significant dividend income. If there’s no improvement and no reason to be optimistic, it may only be a matter of time before the company decides to cut or suspend its payouts. I am thinking of bailing ASAP what do you think? That comes out to $2.26 in U.S. dollars and equals an impressive 8.8% yield. Thanks But the old saying goes there are two things certain in life – death and taxes… and the latter can result in some of those precious dividends slipping through your fingers and into the taxman’s pocket! The post Dividend Investors: Will Enbridge (TSX:ENB) Suspend its Payouts? CALGARY -- Enbridge Inc. is raising its dividend by nearly 10 per cent. An analysis of Enbridge’s dividend must go a little deeper than just the numbers. An unusually high payout ratio of 327% of its profit suggests something is happening other than the usual distribution of profits to shareholders. It’s going to attract a lot of attention from investors the longer the industry struggles. Enbridge expects these projects to increase cash flow by $2.5 billion which will allow it to keep increasing dividends over the next few years. However, if you take the dividend cut in 2016 and the less-than-promised 5% hike in 2020 into account, those wishing to err on the side of caution will probably still end up preferring Enbridge. I hate spam and you should too. Check out our latest analysis for Enbridge . Looking at the universe of stocks we cover at Dividend Channel, on 2/13/20, Enbridge Inc (Symbol: ENB) will trade ex-dividend, for its quarterly dividend of $0.81, payable on 3/1/20. Thoughts ? We credit this unique value proposition for delivering excellent returns to shareholders year after … The #1 Source For Dividend Investing. I suspect they are doing this so Investors won’t jump ship but this is not sustainable right? CALGARY -- Enbridge Inc. raised its dividend as it released its latest financial guidance.