An Improving 6.7% Yield

Chief Income Strategist Marc Lichtenfeld and Senior Managing Editor Rachel Gearhart are braving the snow in New York City today to promote Marc’s new book, You Don’t Have to Drive an Uber in Retirement.

They got a super-early start (3:20 a.m. to be exact – yikes). Their first media engagement was at Fox Business. And weather permitting, they’ll meet with Moneymagazine and Bloomberg Radio later today.

But right now, they’re taking the Street…

With the recent news of Gary Cohn’s resignation, Marc recorded a short video for readers. You can watch it here. To follow more of Marc and Rachel’s New York City adventures, “Like” Wealthy Retirement on Facebook.

– Amanda Tarlton, Assistant Managing Editor

The last time I wrote about Enbridge (NYSE: ENB), nearly two years ago, I said it had a sensational track record but a shaky dividend.

Since then, the company has merged with Spectra Energy, which changed Enbridge’s fortunes and put its dividend on more solid ground.

Enbridge is a Canadian pipeline operator. Many pipeline companies are structured as master limited partnerships (MLPs) in order to generate tax-deferred dividends for its shareholders.

Though it operates pipelines, Enbridge is set up as a corporation, not an MLP, so its dividends are not tax-deferred.

MLPs typically report distributable cash flow (DCF) instead of free cash flow – what regular corporations report. The two are similar but with slight differences. For example, DCF may account for net income attributable to or payments made to a general partner.

Though Enbridge is a regular corporation and not an MLP, it reports DCF instead of free cash flow.

In 2017, Enbridge generated $5.6 billion in DCF. It paid $2.1 billion in dividends.

This year, however, DCF is forecast to drop to $4 billion, while dividends will total $3.4 billion.