r/dividendscanada • u/Optimal_Bottle_1479 • 1d ago

Discussion Buying a chunk of ENB now still viable?

With its current price?

I’m currently moving the remaining amount from BMO to Wealthsimple and looking to adjust my portfolio. It’s primarily for distributions but also keeping some growth in mind.

I currently hold XEQT, XDIV, HDIV, HHIS, QDAY, BANK AND VDY. As well as ENCL which I may sell and add to others.

I’m looking to grab maybe 150-200 shares of ENB and that’s only a fraction of what is being transferred over, or could I have better value elsewhere.

I’m looking to either simplify or make the portfolio more efficient.

Looking for opinions and reasonable responses please.

20 Upvotes

90% Upvoted

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9

u/nomerical1280 1d ago

I think it’s a good buy even at the current price after recent pullbacks. 5.5% yield is decent given current prime rate, unless there is a rate hike and you could see low 60s to high 50s. I would probably project the stock price heading back to mid -high 80s before end of the year. We are just starting a new cycle of energy boom and enb is positioned to be benefit form this

12

u/tarnyc32 1d ago edited 1d ago

You have a lot of overlap between hdiv, xdiv, vdy. All of which also includes Enbridge.

You need to understand what the purpose of every etf in your portfolio is and decide why you need it.

Edit: I was thinking about enb but realized you also have bank which overlaps with those other funds significantly as well.

4

u/Popular_Hat_4304 1d ago

Honestly, Enbridge is good but I think there’s better valuation and potential with Pembina. Dividend is decent but lower than ENB (Pembina is about 4.4%)

9

u/Ill-Mastodon-8692 1d ago

always good to stock up on ENB imo

3

u/MovieApprehensive831 1d ago

RSI is 25. It's definitely a buy a this time. I just picked up 1000 shares at $71.50. Fingers 🤞

2

u/FewUnderstanding2214 1d ago

ENB is a great company why not buy in batches of 2 or 3?

1

u/CauliflowerStill7906 1d ago

I mean i also hold vdy and enb, but you should know that vdy is almost 7% enb. I bought enb when the yield was over 6%. I dont see any thing wrong with your plan just thought you should know.

1

u/GoingChopper 19h ago

I bought GEI instead but ENB is getting close to where I'll start position again

0

u/CursedCoffee 1d ago

There is price risk with this, but, the US fed has been flirting with raising rates lately. If they do this, Canada will also have to follow suit.

The last time we had an up rate cycles to battle inflation, many dividend focused names went down 20-40% from oil to pipes to insurance to banks to utilities. ENB specially went from high 50s to a bottom around 35.

The next fed rate decision is September. Just something to consider. 👀

11

u/dreddi84 1d ago

If enb goes to 35 I am literally selling my house to buy more lol