Tuesday, June 2, 2009

Enbridge Inc

I am reviewing this stock (TSX-ENB) today as I have received its annual report. I first bought this stock in 2005. I bought more of this stock it in 2008 and 2009. To date, including dividends, I have a return of 2.5% per year. I expect this to improve when the market recovers.

This stock has great growth in revenue, earnings, dividends, cash flow, book value and the stock price over the last 5 and 10 years. This stock has grown the dividends at the rate of 8.9% and 9.7% for the last 5 and 10 years. If you look at the spreadsheet, you will see the growth in dividends for 2009 was 12% and this is higher than it has been for the last few years.

Since I updated my spreadsheet for the 2008 Annual report, the stock price has moved slightly down. I am keeping the same estimates for earnings. Estimates do not seem to have changed much. No one still expects that they will do as well in 2009 and 210 as they did in 2008. However, the first quarterly report of March has earnings slight ahead of what everyone seemed to have expected. I have updated my spreadsheet with results from the 1st quarter.

The liquidity ratio has deteriorated from .92 to .81. This is quite low and it means that the current assets cannot cover the current liabilities. The Asset/Liabilities ratio has also gone down very slightly from 1.37 to 1.36. However, the Accrual Ratio has improved greatly from 11% to .61%.

By and large, I am still happy to have bought this stock and I intend to hold on to it. This is a stock that is on everyone’s lists. It is on the Dividend Achievers list at www.dividendachievers.com, and the Dividend Aristocrats list at www.tmxmoney.com/en/individual.html (see indices) and it was also on Mike Higgs’ list.

Enbridge is focused on three core businesses of crude oil and liquids pipelines, natural gas pipelines, and natural gas distribution. They operate in Canada and US. Its web site is www.enbridge.com. See my spreadsheet at www.spbrunner.com/stocks/enb.htm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.

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