Enbridge Inc (TSX:ENB) announced on Wednesday that it is raising its annual dividend by 3% to $3.66 per share effective March 1, 2024, its 29th consecutive yearly increase, as the energy products delivery network said it expects its business to continue to grow next year.
Its quarterly shareholder payout will be $0.915 per share.
Enbridge noted the dividend increase comes as the company forecasts 4% growth for its base business earnings before interest, taxes, depreciation, and amortization (EBITDA) and a 3% increase in its distributable cash flow compared with the midpoint of its 2023 guidance.
The company now expects 2024 adjusted EBITDA on its base business to total $16.6 billion to $17.2 billion, with distributable cash flow per share anticipated to be between $5.40 and $5.80.
The guidance does not include the impact of the US gas utility acquisitions announced in September that are expected to close during 2024.
"Our 2024 guidance showcases the predictability and strength of our four core businesses," Enbridge CEO Greg Ebel said in a statement.
"The growth is attributable to the capital we've placed into service in 2023, over $3 billion of tuck-in acquisitions, embedded revenue escalators and optimization of the base business," he added.
Shares of Enbridge rose 1.3% to $46.96 in early Wednesday trading but have fallen 12% year to date.
Enbridge stock is currently yielding about 7.6%.
Contact Sean at sean@proactiveinvestors.com