Portfolio Update
The FiveTwenty portfolio received $281.44 in dividends in the past week. EMR, JNJ, SON, and WBA paid their quarterly dividend during the week.
| Past Week Dividend | $281.44 |
| Current Quarter Dividend (Q1 2023) | $1,488.08 |
| LifeTime Dividend | $9,596.52 |
| Estimated Annual Dividend | $8,212.68 |
The capital allocation for the week of 03/12/2023 to 03/18/2023 will be used to add to our position in Enbridge (NYSE: ENB).
ENB – Position Update
Since our last check-in on ENB in week 3 of 2023, the company reported Q4 2022 and FY 2022 earnings on 02/10/2023. Furthermore, the share price dropped 6.4% from C$55.92 to C$52.36 during that period.
| TTM | Prev. Update | 10-year median | |
| Dividend Streak | 28 years | 27 years | |
| Yield | 6.62% | 6.15% | 4.52% |
| Payout Ratio | 63.97%1 | 64.42%2 | |
| P/E | 9.661 | 10.472 |
1 computed using TTM DCF of C$5.42 as of Q4 2022
2 computed using TTM DCF of C$5.34 as of Q3 2022
FY 2022 earnings report
Did ENB’s latest earnings report raise any warning flags?
ENB had a strong FY 2022, with full year results coming in at the top half of the guidance range. Overall, OCF increased 21.3%, DCF grew 9.4% and DCF/share was 9.3% higher than in FY 2021
| OCF (in millions) | DCF (in millions) | DCF/share . | |
| 2021 | $9,256 | $10,041 | $4.96 |
| 2022 | $11,230 | $10,983 | $5.42 |
| % Change | 21.3% | 9.4% | 9.3% |
Additional noteworthy developments during the quarter:
- On 02/10/2023, ENB increased its quarterly dividend by 3.8% to C$0.8875 per share. This represents the 28th consecutive year of dividend growth.
Looking ahead, ENB provided FY 2023 guidance for DCF/share of C$5.25 to C$5.65.
Thesis
Why are we adding to our position in ENB?
ENB’s full year financial report for 2022 had no surprises and continued the steady trend demonstrated during the first 3 quarters of the year. Therefore, our investment thesis remains the same as in our previous update and we continue to add to our position in the company.
Previous Articles
- 2023 Week 3: Enbridge (NYSE: ENB)
- 2021 Week 15: Enbridge (NYSE: ENB)
- 2021 Week 6: Enbridge (NYSE: ENB)
Photo by Nicholas Doherty on Unsplash