Second Purchase of May

Just two days after purchasing shares of Power Corp, I have made my second purchase of the month. On May 11th I purchased more shares of Enbridge (TSX: ENB).

About Enbridge

Enbridge Inc. is a Canada-based energy transportation and distribution company. The Company is engaged in delivering energy. It operates through five segments: Liquids Pipelines, Gas Distribution, Gas Pipelines and Processing, Green Power and Transmission, and Energy Services. Liquids Pipelines consists of common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals, including Canadian Mainline, Lakehead Pipeline System, Mid-Continent and Gulf Coast and Regional Oil Sands System. Gas Distribution consists of its natural gas utility operations, the core of which is Enbridge Gas Distribution Inc. Green Power and Transmission consists of its investments in renewable energy assets and transmission facilities. Renewable energy assets consist of wind, solar, geothermal and waste heat recovery facilities in Canada. Energy Services undertake physical commodity marketing activity and logistical services, and oversee refinery supply services.

(Source : Google Finance)

Reasons for Purchase

• Became largest energy infrastructure company in North America following the Spectra Energy acquisition on February 27th, 2017.
• Raised dividend for 22 consecutive years (15% this year)
• Forecast the dividend to grow 10% to 12% per year through 2024.
• Has $27 billion in secured growth programs. $2.4 billion of which has been brought into service earlier in 2017, and another $11 billion for the rest of 2017. Which will have positive impact on future earnings and cash flow.

Dividend

Enbridge has increased it’s dividend for 22 consecutive years. It has grown 15% this year alone. Management has forecast dividend growth of 10% to 12% per year though to 2024.

Transaction Details

Before May 11th I owned 94 shares of Enbridge (ticker: ENB).

I added 25 shares with my new purchase at a cost of $54.85. The total cost of my trade is 25 x $54.85= $1,371.25 + $9.99 (trading cost) = $1,381.24.

Now I own 119 shares with an average cost of $55.26

Income

My 25 shares will add $15.25 in quarterly income. Annually my income will increase $61.

 

So what do you think of my purchase? Do you own Enbridge or plan on owning the stock? Send me a comment I enjoy reading your comments. Thank you for reading I appreciate you stopping by.

Take Care

Matthew