Dividend Investors: Is Enbridge Too Pricey Right Now?

Enbridge (TSX:ENB)(NYSE:ENB) stock has climbed 12.1% in 2019 as of close on January 23. Shares are still down 3% year over year. Minnesota regulators have been engaged in a struggle with Enbridge which intensified in early January, but this has not stalled momentum for its shares.

Enbridge is expected to release its fourth-quarter and full-year results for 2018 in mid-February. For the first nine months of 2018, Enbridge reported strong results across the board. It posted adjusted earnings of $3.40 billion over $1.97 billion in the prior year while distributable cash flow also increased to $5.75 billion compared to $3.87 billion at the same time in 2017.

Enbridge maintained its current three-year financial guidance, which includes 10% compound annual dividend-growth from 2018 to 2020. The company last paid out a quarterly dividend of $0.671 per share which represents an attractive 5.6% yield. Enbridge has achieved dividend-growth for 23 consecutive years.

Investors seeking value have a lot to consider with the TSX surging out of the gate in 2019. Enbridge stock boasted an RSI of 67 as of close on January 23. Shares had just dipped out of overbought territory earlier this week. Still, the stock looks expensive in late January.

Enbridge needs to be monitored by income investors going forward, but those seeking value should probably await a pullback before adding the stock to their portfolios today.