Enbridge (Symbol-ENB)..are we getting close to a buy???
Enbridge (Symbol-ENB)..are we getting close to a buy???
I've been keeping track of ENB and have decided to look at it more closely if the price drops to the $33 - 34 range. At that range the dividend yield is about 3.3%. The company seems strong and their dividend has been slowly rising over the years.
Any thoughts would be appreciated.... thanks....
Any thoughts would be appreciated.... thanks....
Bought Enbridge at $35 or so and plan on keeping it forever. Ask yourself if you want to own Enbridge when you are old. If yes, the price now doesn't matter, unless you are really old and thinking about your estate! Enbridge, Trans Canada, a couple of banks, TransAlta, Russell, IGM, Power Corp, etc should be part of your blue chip Canadian holdings.
Remember, the dividend tax credit means low tax on these dividends as well. Go for it.
Remember, the dividend tax credit means low tax on these dividends as well. Go for it.
If you are buying only for the income and are comfortable with a 3.3% yield and 7-8% dividend growth, then you buy it here. However, expect to see little price appreciation for a while or even a price decline because the current PE of 23 is as high as it's been over the past 10 years.
Disclosure: I own ENB.
Disclosure: I own ENB.
- Shakespeare
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If you go to the G&M site and enter "ENB" into their stock look-up, you will get a nice workup that includes this in the lower left-hand corner:what ratio a more acceptable P/E ratio ?
And it's free.
P.S. I bought a partial position this morning - not a great price, but a good stock.
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Neat chart but beware of graphic distortions, specifically in P/E and P/B.Shakespeare wrote:a nice workup that includes this
Added: The above is a screen print using the pop-up window sized as the G&M web server specified it on creation. Below is the same using full-screen. Note how much "more attractive" the P/E and P/B slider positions look even though all the scale values remain identical.
Sedulously eschew obfuscatory hyperverbosity and prolixity.
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That's a very handy tool; G&M's stock profiler. Thanks for posting the link, Shakes. I have been using this for quick reference, but I've never been completely comfortable with the accuracy of MSN Moneycentral's data for Canadian stocks.Shakespeare wrote:If you go to the G&M site and enter "ENB" into their stock look-up, you will get a nice workup that includes this in the lower left-hand corner:
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
Thomas Babington Macaulay in 1830
Be very careful of the public databases. The first graph for Microsoft is from Ford Equity Research via TD Waterhouse while the second is the G&M. Note the differences in hi & lo.
- Shakespeare
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Even S&P has problems. It consistently screws up TSE listed companies that also trade in NY. It mishandles the exchange rate based data conversion. Makes you wonder about an analyst's initial report if he accesses the S&P database as a start point.Shakespeare wrote:Public databases should, in general, be treated as having an accuracy of 10-20%.Be very careful of the public databases.
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Makes you wonder how many more fund managers could beat the monkeys if only they had accurate data to work withyielder wrote:Even S&P has problems... Makes you wonder about an analyst's initial report if he accesses the S&P database as a start point.Shakespeare wrote:Public databases should, in general, be treated as having an accuracy of 10-20%.Be very careful of the public databases.
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- Shakespeare
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I already bought a smidgen this morning at $32.36. A dividend yield of around 3.5% will do me fine in today's market.Shakespeare wrote:At $32.37, ENB is now approaching its 52-week low ($32.06). Since I took a position earlier, I will probably not add unless the price drops further ($30?).
This is the first time I've been in a buying mood in months. Bought another small chunk of TRP as well, and added to one of the banks.
Actually, I should be more specific: my figures above were based on Friday's closing bid of $25.63. At today's closing quote of $25.59-65, the YTW is 3.83-07% (3.83% @ bid, 3.07% @ ask) ... the yield spread gives you an idea of what commission will do to you!Nemo2 wrote:Thanks. Much appreciated.jiHymas wrote:YTW = 3.24% (as interest & capital loss) based on a call 2007-3-17 @ $25.00. A three-month bill pays more.Nemo2 wrote:Any opinions on enb.pr.d @ 25.65 paying 7.59%?
A little later..... anybody thinking of buying the latest offering at $38.50 today?Taggart wrote:I already bought a smidgen this morning at $32.36. A dividend yield of around 3.5% will do me fine in today's market.Shakespeare wrote:At $32.37, ENB is now approaching its 52-week low ($32.06). Since I took a position earlier, I will probably not add unless the price drops further ($30?).
This is the first time I've been in a buying mood in months. Bought another small chunk of TRP as well, and added to one of the banks.
Stan
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