Avoid holding ENB due to high debt risk

1 day ago

Sven Carlin

"I would have thought here that they would work on lowering the debt a little bit so all that growth is based on a 50% increase of debt and that is again issue I never liked that much that if there is growth but with that it means there is no growth. It"s like the US government they all say economy is growing at 2%. Wow. Wow. But with 7% deficits your economy is declining at 2% per year. No matter what everybody tells you, if I see here 50% growth in debt and I don"t see that reflected in higher than 50% dividend growth, then the story doesn"t add up, which means the risks go higher. I hope nothing bad happens, but I wouldn"t hold this."

The speaker expresses caution regarding Enbridge (ENB) due to its high debt levels. He argues that if the increase in debt is not matched by appropriate dividend growth, the stock becomes too risky, and he advises investors to avoid holding the stock.

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