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Enbridge announces dividend increase and continues net zero emissions push

EditorAmbhini Aishwarya
Published 29/11/2023, 13:24
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Enbridge (NYSE:ENB) Inc., a leader in energy delivery systems across North America and Europe, has announced a 3.1% increase in its quarterly common share dividends, marking the twenty-ninth consecutive year of dividend growth for the company. The new dividend is set to be paid out on March 1, 2024, to shareholders of record as of February 15, 2024.

The decision, made by the Board of Directors on Tuesday, reflects Enbridge's commitment to providing consistent returns to its investors. Alongside the increase for common shares, dividends for several Preference Shares series were also declared, with specific rates varying per series.

Enbridge's growth strategy is not limited to dividend increases. The company is actively investing in renewable energy, with a particular focus on expanding its European offshore wind portfolio. Moreover, Enbridge is exploring innovative technologies, including hydrogen and carbon capture, to support its ambition of achieving net zero greenhouse gas emissions by 2050.

InvestingPro Insights

Enbridge Inc. 's recent announcement of dividend growth is a testament to its strong tradition of rewarding shareholders. With a noteworthy track record of raising its dividend for 29 consecutive years, the company's commitment to consistent returns is clear.

Investors should note, however, that Enbridge is trading at a high earnings multiple with a P/E Ratio as of Q3 2023 at 18.92. This suggests that the stock may be valued at a premium compared to its earnings. On the flip side, the company's significant dividend yield, which stood at 7.59% as of the end of 2023, remains a compelling draw for income-focused investors.

For those considering an investment in Enbridge, it's worth noting that 6 analysts have revised their earnings expectations downwards for the upcoming period, indicating potential headwinds. Nevertheless, Enbridge is recognized as a prominent player in the Oil, Gas & Consumable Fuels industry and continues to explore growth avenues in renewable energy and technology innovations.

For more in-depth analysis and additional InvestingPro Tips on Enbridge, including the company's latest financial metrics and analyst forecasts, a subscription to InvestingPro is highly recommended. Currently, there is a special Cyber Monday sale offering up to 55% off on subscriptions. Plus, use the coupon code sfy23 to get an additional 10% off a 2-year InvestingPro+ subscription. There are 11 additional InvestingPro Tips available for Enbridge, providing a wealth of information for informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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