Enbridge (Toronto:ENB.TO)

Enbridge is a Canadian company active since 1949 in the oil and gas transportation via pipelines and gas pipelines. It has 6,000 employees spread mainly across Canada, but also in the United States. Enbridge is short for "Energy" and "Bridge". We are monitoring this stock as part of our dollar diversification strategy. Currently, the company's fundamentals and dividends place Enbridge in the "hold" zone of our portfolio.

The stock offers a good long-term yield of 3.57%. Dividends are growing at an average annual rate of 10.95% and the company has increased its distributions every year for the past 16 years. THE distribution rate is quite high, at 67.30%, leaving Enbridge with relatively little margin of safety in the event of stagnation or decline in profits. The stock's volatility against the CHF is interesting, at 11.96%.

Enbridge is typically the kind of stock that fits our investment strategy, with a relatively low volatility, attractive and progressive distributions and good protection/diversification against the USD. The decline in earnings per share has increased the distribution ratio, which means that for the moment we are not taking a position on ENB.TO. It will however be interesting to follow this stock in the future.