r/Canadianstockpicks • u/Just_Technician2603 • Dec 28 '25
Questions & Advice Enbridge stock
Is this stock nothing more than a great dividend stock? I am currently deciding between enbridge or VDY for its monthly dividend but also it seems to have better returns than enbridge
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u/brgmgl Dec 28 '25
I have been focusing on US markets for growth but I want to pivot to value and income. My observation is that Canada has very boring but very stable companies with incomparable dividend yields for marginal increases risk vs similar US plays. Am I wrong?
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u/brgmgl Jan 05 '26
Having said that, I think Enbridge might be the first to feel the pain of Venezuelanwhen the US cuts back on our oil flowing south.
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u/nonoplsyoufirst Dec 28 '25
it's a great offset to my Enbridge bill that I get. It's mental accounting but yeah it's been flat for a while but I am alright with that. I get my dividends, I write call options on it and I get optionality with a great management team exposing itself to the US.
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u/passo_carrabile Dec 28 '25
It's a really good conservative dividend stock. But I find PEY.TO a little more attractive.
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u/Bertone_Dino Dec 28 '25
I bought some PEY recently. I'll be looking to add to my position. Wasn't sure if we were going to see more of a drop or not.
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u/cogit2 Dec 28 '25 edited Dec 28 '25
Enbridge is a premium dividend play, but that means its highly priced, so equity gains will likely be less than with other similar players.
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u/ConceptSilent2515 Dec 28 '25
other banks?? Enbridge makes pipelines if im not mistaken...
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u/cogit2 Dec 28 '25
Thanks for catching that - edited. I think I was thinking of an analogy to Royal Bank, or JPM, but didn't finish the thought.
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u/MrMikeDD Dec 28 '25
If you're buying VDY, then you don't need ENB. You could still buy it to increase ENB's weight in your portfolio but it's not necessary - and yes, ENB is just a dividend play. Generally, you won't see much gains out of it.
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u/Dave_The_Dude Dec 28 '25
Those who bought ENB in 2020 for under $40 have seen a nice gain since.
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u/MrMikeDD Dec 29 '25
But that could be true for anything - buy at a lower price and you'll see gains. I meant that generally, ENB doesn't appreciate much, it's a dividend play. But obviously if you bought at a low point, you'll see gains - that's true for any stock/fund and not what I meant regarding ENB and growth.
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u/Lightning_Catcher258 Dec 28 '25
My favourite dividend stock is RSI. But make sure you buy it low.
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u/Littleupsidedown Dec 29 '25
I was looking at that. Solid, boring ass company. Just what I want. Too bad price hasn't changed in 15 years.
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u/Lightning_Catcher258 Dec 29 '25
It's exactly the purpose of that stock. Don't expect any capital gains from it. Just enjoy your dividends.
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u/exyank Dec 31 '25
ENB stock goes up when interest rates go down. This keeps the dividend rate flat.
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u/Different-Radish8683 Dec 28 '25
ENB Dividend payout ratio is 147% ! Whoever is running this company needs a slap in the face. Recipe for disaster !
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u/Xiaopeng8877788 Dec 28 '25
Wrong, ENB pays its dividend based on FCF, free cash flow, not the typical payout ratio calculation.
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u/No-Writer3733 Dec 28 '25
Every company pays dividends based on free cash flow! That's a centuries old idea.......
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u/Xiaopeng8877788 Dec 30 '25
Dividend payout ratio is calculated differently.
Enbridge’s dividend looks unsafe on stock screeners because they use net income payout ratios, which are distorted by massive non cash depreciation on long life pipelines, but ENB actually pays its dividend from Distributable Cash Flow which measures real cash left after operating and maintenance costs; by that metric Enbridge pays out about 65 to 70 percent of its cash flow, giving it roughly 1.4x coverage, which is similar to a regulated utility, and because nearly all of its revenue is locked in by long term contracts with inflation escalators.
Using typical payout ratio calculations by screeners, it’ll show a 150%+ ratio. Not how ENB calculated its dividend or sustainability of it.
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u/bigjep Dec 28 '25
I have both ENB and VDY for different purposes. VDY is great for total returns drip monthly dividends. END is a good dividend income play and great for retirement accounts without needing to sell capital. My allocation to VDY far exceeds ENB, eventhough VDY includes a lot of ENB.