Separately, Enbridge announced that the quarterly dividend for 2021 will be increased from $0.81 to $0.835 per share, commencing with the dividend payable on March 1, 2021, to shareholders of record on February 12, 2021. The remaining portion of the dividend, $0.045382 per share was designated as an “eligible dividend” for Canadian federal income tax purposes. The midstream industry is one that enjoys numerous competitive advantages for several reasons. The portion that was not designated as an “eligible dividend” under Canadian tax rules was $0.237118 per share. Despite headwinds in the energy sector, Enbridge stock remains well positioned to … CALGARY -- Enbridge Inc. is raising its dividend by nearly 10 per cent. Management is guiding for 10% dividend growth in 2019 and 2020 as well, meaning that Enbridge is one of the highest-yielding and fastest-growing dividend stocks in … For more information please refer to our news release. This information is of a general nature and not exhaustive of all possible income tax considerations. Comprehensive listing of Enbridge's common and preferred share dividends. However, a 10% rate applies if the payer of the dividend is a nonresident-owned Canadian investment corporation. It is not intended to be legal or tax advice to any particular or potential shareholder or investor. Canadian registered shareholders will receive a T5 Supplementary slip from Computershare Trust Company of Canada. If a company declares a $1 per share dividend and you own 100 shares, you will receive $100. Non-residents who participate in the DRIP should be aware that the amount of any dividend designated for reinvestment will be reduced by the applicable Canadian non-resident withholding tax. The pipeline company says it will start paying a quarterly dividend of 81 cents, effective March 1, up from its previous rate of 73.8 cents. Case in point: Enbridge Inc (NYSE:ENB) stock. Please note: Enbridge Inc. does not take responsibility for the content of this website as information may be out of date or no longer accurate as of November 8, 2018. Dividend Reinvestment and Share Purchase Plan (DRIP). September 1, 2013 Enbridge Inc. Common Share Dividend: Please note that a portion of the $0.3150 September 1, 2013 Enbridge Inc. Common Share dividend was not designated as an “eligible dividend” pursuant to Subsection 89(14) of the Income Tax Act. Hier erhalten Sie eine Übersicht über die Dividendenzahlung und Dividendenrendite von ENBRIDGE sowie die anstehenden und vergangenen Hauptversammlungstermine (HV-Termine). On your next visit, you'll find a shortcut to this page in the main menu. Have a question for Enbridge's Investor Relations team? Dividends paid to U.S. shareholders are subject to a 15% withholding tax; however, some U.S. shareholders may have experienced up to a 53% withholding tax on their dividend payment on June 1st if all of the required tax forms were not completed (25% deducted to the Canada Revenue Agency and 28% deducted to the IRS). Enbridge Income Fund Holdings Inc. has been acquired by Enbridge Inc. For additional information on the transaction, please review the following quick links. A 5% rate applies to intercorporate dividends paid from a subsidiary to a parent corporation owning at least 10% of the subsidiary’s voting stock. The portion that was not designated as an “eligible dividend” under Canadian tax rules is $0.180382 per share. Qualified dividends are tax-free for individuals in the 10% and 12% tax brackets (or those earning less than $39,375 per year). Home Enbridge Inc. (ENB Quick Quote ENB - Free Report) announced that its board of directors has approved an increase in quarterly dividend payment.. Computershare Trust Company of Canada Common share dividends paid by Enbridge Inc. will be subject to Canadian withholding tax at the rate of 25% unless the rate is reduced under the provisions of a tax treaty between Canada and the non-resident shareholder’s jurisdiction of residence. Dividend Growth From Enbridge Stock. You may be eligible to claim a credit or deduction against your local taxes with respect to these Canadian non-resident withholding taxes. The pipeline company says it will increase its quarterly payment to shareholders to 83.5 cents per share, up from 81 cents per share. The company has increased its dividend for 25 consecutive years. Click to remove it from your list. In addition, like all Canadian stocks, U.S. Enbridge investors face a 15% foreign dividend tax withholding. You may be eligible to claim a credit or deduction against your local taxes with respect to these Canadian non-resident withholding taxes. Site map | Terms of use | Privacy policy | Glossary. The other moat creating advantage is the highly regulated nature of the business. For example, pipeline projects … ENB stock is trading at $41.56, which means its dividend yield stands at a tasty 7.8%. © 2020 Enbridge Inc. All rights reserved. Generally, dividends invested in additional shares under the DRIP are still subject to tax in the same manner as normal or cash dividends. Specifically, Enbridge has raised its dividend for 23 consecutive years (including 2018's 10% increase), at an average rate of 11% annually. This translates into $3.24 dividend per share on an annualized basis for 2020. U.S. residents are not entitled to participate in the DRIP. But now that we continue to move forward through the COVID-19 pandemic, the oil and gas industry (which was already in a bear market prior to the pandemic) is getting hit even harder. Typically, the amount reinvested through the DRIP will be added to the adjusted cost base of your ENF common shares for the purpose of computing any subsequent gains or losses thereon. Taxpayers who hold Canadian dividend-paying stocks get a tax break. Enbridge is one of the more popular options when it comes to Canadian dividend stocks.. There’s some solid reasoning for this as well. This information is included on the individual's Form 1040. We’ll get to valuation shortly, but I wanted to highlight that as it is a primary factor for the company sporting a 8.39% dividend yield, which most would deem unsustainable. The company pays its dividend on a quarterly basis to equal a total amount of $1.40 per year. RIC is the source country for mutual funds and ETF's. Dividends are reported to individuals and the IRS on Form 1099-DIV. ENB's next quarterly dividend payment will be made to shareholders of record on Monday, March 1. For the 2019 tax year, you will not need to pay any taxes on qualified dividends as long as you have $38,600 or less of ordinary income. Separately, Enbridge announced that the quarterly dividend for 2020 will be increased by 9.8% to $0.81 per share, commencing with the dividend … Qualified dividends are taxed at a lower rate than ordinary income, at the capital gains tax rate. I dove deeply into Enbridge’s dividend sustainability in the video below. Please note, the Company has determined to suspend, effective immediately, its amended and restated dividend reinvestment and share purchase plan (the “DRIP”) until further notice. Under current law in 2020, no tax is owed on capital gains (or qualified dividend income) if taxable income is below $40,000 for single filers ($80,000 for joint filers). Tax Treatment of Qualified Dividends. If you have any questions regarding the taxation of Canadian dividends in your local jurisdiction, please contact your local tax advisor. Enbridge has long been an excellent income stock, paying a dividend to investors for the past 64 years. The deadline for issuance of T5 Supplementary slips is on or before the last day of February following the calendar year to which the information applies. Case in point: Enbridge Inc (NYSE:ENB) stock. Next year, the company says it expects between $4.70 and $5. The shares will have a yield of about 6.3 per cent, based on Enbridge's closing share price on Monday. For most of the past two years, Enbridge stock has drifted lower. eligible dividends that Enbridge itself received this quarter from Noverco Inc., a Canadian Controlled Private Company (“CCPC”) . Should you pursue your analysis, this video will bring you more insights. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend credit. Review ENB (XNYS) dividend yield and history, to decide if ENB is the best investment for you. In early 2015, shares traded as high as $55.00 a piece. Canadian beneficial shareholders who received dividends outside of an RRSP, RRIF or DPSP should receive a T5 Supplementary slip from their brokerage firm or intermediary. Please refer questions regarding the T5 slips directly to your brokerage firm or AST Trust Company (Canada). To avoid any future withholdings on your next dividend, please return a completed NR301 and W9 tax form to the Computershare Trust Company of Canada at the address listed below. In December 2019, we announced a 9.8% increase to our dividend per share, increasing the quarterly dividend to $0.810. Enbridge has paid dividends for over 65 years to its shareholders. Toronto, Ontario Review ENB (XNYS) dividend yield and history, to decide if ENB is the best investment for you. Answers to the most frequently asked questions from the investment community. Over the past 25 years, the dividend has grown at an average compound annual growth rate of 11%. If you have any questions regarding the taxation of eligible dividends, please contact your Canadian tax advisor or your local office of the Canada Revenue Agency. To help compare the sizes of dividends, investors generally talk about the dividend yield, which is … ENF is considered to be “a qualified foreign corporation” and the dividends paid on its common shares are considered to be “qualified dividends” as those terms are defined in the U.S. Internal Revenue Code. Tax treaties between the U.S. and Canada allow U.S. investors to potentially recoup this withholding, but it can be a complicated and lengthy amount of paperwork at tax time. Enbridge Inc. (ENB.TO) pays out 330.00% of its earnings out as a dividend. Final Thought. Canadian registered shareholders will receive a T5 Supplementary slip from AST Trust Company (Canada). Its quarterly dividend payment of $0.81 would be rising by 3% up to $0.835. Enbridge raised its dividend by 3% to C$0.835/quarter or C$3.34 annually, effective March 1, 2021. Save time by adding this page to your list of favorites. For more details please refer to: 2012 ENB Q1 Div Tax Q&A (PDF 76 KB). Taxes in Retirement; ... Enbridge's dividend track record is remarkable. Where the non-resident shareholder is a United States resident entitled to benefits under the Canada-U.S. tax treaty, the rate of Canadian withholding tax on dividends is generally reduced to 15%. Canada is the source country for Enbridge. In early 2015, shares traded as high as $55.00 a … Save Article Enbridge Inc.’s stock price slide has made its dividend yield (currently at 6.7%) amongst the highest in its peer groupSmallCapPower | April 10, 2018: Enbridge Inc. () is one of North America’s largest energy infrastructure providers, transporting 28% of the crude oil produced in North America and 23% of all natural gas consumed in the United States. The remaining portion of the dividend, $0.134618 per share was designated as an “eligible dividend” for Canadian federal income tax purposes. dividend tax credit due to the fact that a portion of the funds being distributed are, effectively, sourced to non-eligible dividends that Enbridge itself received this quarter from Noverco Inc., a Canadian Controlled Private Company (“CCPC”). This means that large players like Enbridge, with vast access to low-cost capital, have a major advantage over smaller rivals. 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