Enbridge Inc.: Is the High Dividend Yield Safe? | FAST Graphs
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 Published On Nov 23, 2021

I will be covering Enbridge Inc. (ENB) a Canadian-headquartered midstream oil and gas storage and transportation company. This is a subscriber request Tuesday video where subscribers to our channel ask me to cover certain companies. I believe Enbridge Inc. is a very interesting company to review because of its complex capital structure. Consequently, there are a lot of lessons, perspectives, and considerations that investors need to understand and evaluate before investing. The key question I will be attempting to answer is whether the dividend is safe. This is a high-yield stock whose primary allure is its high current yield.

FAST Fundamental Analysis

1. Earnings Growth
2. Dividend Growth Trend (If Any)
3. Reasonable Return Expectations
4. Investment Grade Credit Rating (BBB- or better)
5. Valuation
6. Free Cash Flow >Dividend
7. Cash Flow from Operations Growth Trend (3-5 Years Minimum)
8. Share Buybacks (Valuation Based)
9. Cash Flow from Operations (CFO) – Higher than Net Income
10. Sales Growth Trend (3-5 Years Minimum)
11. Net Income Growth Trend (3-5 Years Minimum)
12. Debt to Equity Ratio – 1 to 1 (Industry Norms)
13. Gross Margin versus Net Margin (Industry Norms)
14. Asset Turnover (Sales/Assets)
15. Return on Assets >10% or Better
16. Return on Equity >15% or Better
17. Operating Earnings Margin (EBIT/Sales)

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