Enbridge (TSX: ENB) is not only a great dividend (growth) game to encounter in a TFSA (tax -free savings account), it is a great company with what I have described as one of the most shareholder -friendly management teams that are available. The company is indeed a real money cow, and although I would not hesitate to refill a position on these heights, I just think that there is a better value elsewhere now that the shares of ENB are going more than 23 times backward price gain (p/e). Indeed, the pipelines are back in fashion on Bay Street.
And although the perfect combination of momentum and dividend growth makes it worthwhile to stay on board the pipeline giant, I have to say that it is a bit discouraging to see the yield shrink to 5.6% of more than 7% in just a few quarters. Indeed, if we could go back and lock the proceeds of 7% in addition to dividend growth and fast percentage of profit for double digits that come.
Although I have voted for ENB shares for years, I have to say that I am more inclined to keep, while the name is at fresh heights, just north of $ 66 per share. Although Enbridge probably continues to work at a very high level, because the Midstream energy scene in the area is experiencing, I think there is more yield and deeper value in the Telecom Arena.
BCE Stock looks very cheap; can turn their fortunes
Take those battered shares of BCE (TSX: BCE), who suffered a colossal dividend many months ago. The yield is on a still respectable 4.9%, and with many investors who undergo the name from their portfolio, I think there is a chance to come in while the bears are in control. When writing, BCE shares has still fallen more than 51% compared to his all time.
And although there is pressure on the telecom in the midst of rising price pressure, heaven -high competition and all species, I have to say that the bearthesis is already more than baked in the stock. For $ 35 per share, the Telecom Titan looks like a company with so little in the way of expectation that even a touch of relief could be sufficient to feed a considerable upward movement. During the second quarter of the company, BCE achieved considerable income and net income. It was a light beat, but enough to let BCE stock go for the change in the green.
With 94,000 new additions from mobile customers (more than 56% above estimates), BCE seems to be back on the right track.
The Telecomjuggernaut does not only get rid of the canvas; It starts to show that it needs what is needed to surpass his rivals in the Big Three in Wireless, and perhaps it offers more for money at these depths. Personally, I don’t think the much-dan-dance Q2 is a one-off. BCE has made many movements behind the scenes and the company can very well be about to turn on despite a clear lack of catalysts in the industry in the second half.
Too cheap to ignore
Of course a single percentage growth point is not too exciting. But it is a starting point, perhaps for something big like BCE -eyes AI (PerTlexity Pro is a worthy advantage for customers), as a way to seal the company after a musty few years.
On 13.3 times forward price win (p/e) I consider BCE shares stealing on these depths. If Q2 is a turning point, perhaps a serious dividend growth could loom if the company wants to win back income enthusiasts in the years after its major dividend reduction.
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