Is it a good company at a reasonable price? This is a Utility stock but classified as an Energy stock as it transports oil and gas. I do not like their high DPRs and think they need to do something about them and they have been getting lower and analysts expect that the DPR for EPS will be around 107.06 in 2028 and the DPR for AEPS to be around 109.92 in 2028. They have a high debt, but most utilities do. I personally plan to hold on to this stock. It is just off its most recent high and that fits with it being in the expensive range.
I own this stock of Enbridge Inc (TSX-ENB, NYSE-ENB). I first bought this stock in 2005 and then bought more in 2008 and 2009. This stock was on the Dividend Achievers, the Dividend Aristocrats list and also on Mike Higgs’ list of Canadian Dividend Growth stocks. Enbridge is considered to be a low risk stock. The Canadian list is now the Canadian Dividend Aristocrats and Enbridge is on the list. However, it has not been on the Money Sense 100 Best Dividend Stocks since 2023.
When I was updating my spreadsheet, I noticed I have had this stock for 20 years and I have made a total return of 12.91% per year with 7.58% from capital gains and 5.33% from dividends.
When updating my spreadsheet from the annual statement, I saw a couple of things I do not like. First was Revenue per Share is down over the past 10 years by 2.8%. Revenue per share for the past 5 years is up by 8.8%, so that is not bad. Revenue for the past 10 and 5 years is up by 6.6% and 10.4% respectively.
The other thing was the Liquidity Ratio which even after Cash Flow being included is still just 0.82. I would like this to be at 1.50 or higher. When this ratio is below 1.00, it means that Current Assets cannot cover Current Liability. The company does have a sizeable current portion of their long term debt due, but even taking that into consideration, the Liquidity Ratio is just 1.08. This company has never had a good Liquidity Ratio.
If you had invested in this company in December 2015, for $1,012.00 you would have bought 22 shares at $46.00 per share. In December 2025, after 10 years you would have received $685.72 in dividends. The stock would be worth $1,444.96. Your total return would have been $$2,130.68. This would be a total return of 9.27% per year with 3.63% from capital gain and 5.64% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $46.00 | $1,012.00 | 22 | 10 | $685.72 | $1,444.96 | $2,130.68 |
The current dividend yield is good with dividend growth low. The current dividend yield is good (5% to 6% ranges) at 5.16%. The 5 and 10 year median dividend yields are good at 6.86% and 6.29%. The historical median dividend yield is moderate (2% to 4% ranges) at 3.90%. The dividend growth is low (below 8% per year) at 3.1% per year over the past 5 years. The last dividend increase was in 2026 and it was for 3%. This company has a 30 year history of increasing dividends and that is why it is on the Canadian Dividend Aristocrats list.
The Dividend Payout Ratios (DPR) are probably too high, with only AFFO moderate. The DPR for 2025 for Earnings per Share (EPS) is too high at 117% with 5 year coverage at 141%. The DPR for 2025 for Adjusted Funds from Operations (AFFO) is good at 66% with 5 year coverage at 65%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is too high at 125% with 5 year coverage at 125%. The DPR for 2025 for Cash Flow per Share (CFPS) is too high at 70% with 5 year coverage at 73%. The DPR for 2025 for Free Cash Flow (FCF 1) is too high at 182% with 5 year coverage at 139%. The DPR for 2025 for Free Cash Flow (FCF 2) is too high at 207% with 5 year coverage at 121%. FCF varies from $3,297M to $4,510M.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 116.72% | 141.40% |
| AFFO | 66.02% | 65.46% |
| AEPS | 124.83% | 125.42% |
| CFPS | 70.86% | 73.82% |
| FCF 1 | 182.26% | 139.91% |
| FCF 2 | 206.64% | 120.99% |
Debt Ratios need improving. The Long Term Debt/Market Cap Ratio for 2025 is fine at 0.69 and currently at 0.60. The Liquidity Ratio for 2025 is too low at 0.63 and 0.63 currently. If you added in Cash Flow after dividends, the ratios are still too low at 0.82 and currently at 0.89. If you add back the current debt that is being taken care of, the ratio just barely back it past 1.00 at 1.08 and currently at 1.17. I like a Liquidity Ratio of 1.50 or higher. Although I must admit this company has had lousy Liquidity Ratios throughout its history. The Debt Ratio for 2025 is low at 1.43 and 1.43 currently. I like to see this ratio at 1.50 or higher. The Leverage and Debt/Equity Ratios for 2025 are too high at 3.31 and 2.31 and currently at 3.31 and 2.31. I like to see these ratios below 3.00 and below 2.00.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.69 | 0.60 |
| Intang/GW | 0.27 | 0.24 |
| Liquidity | 0.63 | 0.63 |
| Liq. + CF | 0.82 | 0.89 |
| Liq. + CF+D | 1.08 | 1.17 |
| Debt Ratio | 1.43 | 1.43 |
| Leverage | 3.31 | 3.31 |
| D/E Ratio | 2.31 | 2.31 |
The Total Return per year is shown below for years of 5 to 35 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 3.08% | 17.33% | 10.04% | 7.29% |
| 2015 | 10 | 7.32% | 9.27% | 3.63% | 5.64% |
| 2010 | 15 | 10.44% | 11.24% | 5.81% | 5.42% |
| 2005 | 20 | 10.43% | 11.58% | 6.64% | 4.94% |
| 2000 | 25 | 10.40% | 12.20% | 7.44% | 4.76% |
| 1995 | 30 | 9.41% | 16.00% | 9.79% | 6.20% |
| 1990 | 35 | 8.06% | 11.15% | 7.08% | 4.07% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 18.10, 19.92 and 21.74. The corresponding 10 year ratios are 20.33, 24.40 and 27.48. The corresponding historical ratios are 18.10, 19.36 and 23.82. The current ratio is 24.53 based on a stock price of $75.26 and EPS estimate for 2026 of $3.07. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 16.12, 19.07 and 21.19. The corresponding 10 year ratios are 16.06, 18.96 and d 21.97. The corresponding historical ratios are 16.89, 19.21 and 21.97. The current ratio is 25.09 based on a stock price of $75.26 and AEPS estimate for 2026 of $3.00. The current ratio is above high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.
I also have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/ Adjusted Funds from Operations Ratios are 8.42, 9.64 and 10.99. The corresponding 10 year ratios are 8.80, 10.19 and 11.81. The corresponding historical ratios are 10.12, 11.27 and 13.15. The current ratio is 12.80 based on a stock price of $75.26 and AFFO estimate for 2026 of $5.88. The current ratio is above high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $41.32. The 10-year low, median, and high median Price/Graham Price Ratios are 1.08, 1.26 and 1.48. The current ratio is 1.82 based on a stock price of $75.26. The current ratio is above high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.
I get a 10-year median Price/Book Value per Share Ratio of 1.88. The current ratio is 2.98 based on a Book Value of $55,184M, Book Value per Share of $25.29 and a stock price of $75.26. The current ratio is 59% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I also have Book Value per Share estimate for 2026 of $24.99. This analyst calculates the ratio differently than I do and, in this case, the 10 year median ratio is 1.71. The current ratio is 3.01 based on a Book Value of $54,528M, Book Value per Share of $24.99 and a stock price of $75.26. This ratio is 76% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get a 10-year median Price/Cash Flow per Share Ratio of 9.63. The current ratio is 11.79 based on Cash Flow per Share estimate for 2026 of $6.39, Cash Flow of $13,952M and a stock price of $24.99. The current ratio is 22% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get an historical median dividend yield of 3.90%. The current dividend yield is 5.16% based on dividends of $3.88 and a stock price of $75.26. The current dividend yield is 32% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median dividend yield of 6.29%. The current dividend yield is 5.16% based on dividends of $3.88 and a stock price of $75.26. The current dividend yield is 18% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The 10-year median Price/Sales (Revenue) Ratio is 2.10. The current P/S Ratio is 2.67 based on Revenue estimate for 2026 of $61,518M, Revenue per Share of $28.19 and a stock price of $75.26. The current ratio is 27% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
Results of stock price testing is that the stock price is probably expensive. The 10 year median dividend yield test says it is reasonable but above the median. The P/S Ratio test says the stock price is expensive. The 10 year median dividend yield is near expensive. Other tests are saying from reasonable but above the median to expensive. I give it a Hold.
When I look at analysts’ recommendations, I find Strong Buy (5), Buy (3), Hold (11), Underperform (1) and Sell (1). The consensus would be a Buy. The 12 month stock price is $75.76 with a high of $85.00 and low of $66.00. The consensus stock price of $75.76 implies a total return of 5.82% with 0.66% from capital gains and 5.16% from dividends based on a current stock price of $75.26.
All but one analyst on Stock Chase in 2026 says buy. The Do Not Buy says that it overdistributes and he prefer TC Energy for growth. Andrew Walker on Motley says if you are a buy and hold you should be comfortable in buying this stock now even though it is at an all-time high. Jitendra Parashar on Motley Fool says if the market crashes in March, he is buying this stock. The company put at a Press Release about its fourth quarter of 2025.
Simply Wall Street via Yahoo Finance reviews this stock and says that the Fair Value is $73.81. Simply Wall Street has two warnings of interest payments are not well covered by earnings; and dividend of 5.13% is not well covered by earnings or free cash flows.
Enbridge owns extensive midstream assets that transport hydrocarbons across the US and Canada. The company also operates regulated natural gas utilities in the US and Canada, including Canada's largest natural gas distribution company. The firm has a small renewable energy portfolio primarily focused on onshore and offshore wind projects. Its web site is here Enbridge Inc.
The last stock I wrote about was about was H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF) ... learn more. The next stock I will write about will be TC Energy Corp (TSX-TRP, NYSE-TRP0) ... learn more on Friday, April 3, 2026 around 5 pm. Tomorrow on my other blog I will write about Capital Compounders Newsletter.... learn more on Thursday, April 2, 2026 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.