The Globe and Mail reports in its Thursday, Aug. 4, edition that as interest rates drift lower, yield-hungry investors have been scrambling for cash flow. The Globe's Gordon Pape writes that the stock market is about the only place to find it, which means taking on risk that may be beyond many people's comfort level. Mr. Pape recommends focusing on companies with the potential to increase dividends/distributions on a regular basis, not on those with the highest current yield. Mr. Pape recommends buying Enbridge ($53.01). He notes Enbridge has a
long history of annual dividend
increases but it has recently
stepped up the pace. He says the 2015 increase
was an eye-popping 33 per
cent, to $1.86 a share annually.
The company followed that up
with a 14-per-cent boost at the
start of 2016, to $2.12 a share.
Management has set a target of
annual divided growth of between
14 per cent and 16 per
cent a share through 2019. Enbridge's current yield stands at 4 per cent. Credit Suisse analyst Andrew Kuske rated Enbridge "neutral" in The Globe on March 9. The shares were then worth $49.87. First Avenue manager Kash Pashootan said buy Enbridge in The Globe on June 6. The shares could then be had for $53.13.
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