How to Buy Enbridge Stock [2024] | Invest in ENB

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We’re in a climate emergency powered by the burning of fossil fuels. Unfortunately, fossil fuels still amount to 80% of the world’s energy needs, and the shift to cleaner alternatives will likely take decades. 

But the push from both governments and consumers to decarbonize has intensified and driven even oil and gas companies to adopt a greener mindset. One such company is Enbridge, a pipeline and energy company, beginning a transition into cleaner energy while it can still depend on the consistent cash flows from its enormous array of carbon-based assets. 

In this guide, you’ll find an overview of the energy provider, learn how to buy Enbridge stock, as well as get suggestions for the best brokers to use.

What is Enbridge?

The company was formed in 1949 (soon after Canada’s first major oil discovery in Leduc, Alberta) by Imperial Oil as the Interprovincial Pipe Line (IPL) to transport Alberta oil to refineries. Over time, it has grown through various mergers and acquisitions with other existing pipeline companies as well as by expanding its projects. Most recently, in 2017, Enbridge merged with Spectra Energy in an all-stock deal valued at about $28 billion.

Enbridge moves approximately 30% of the crude oil produced in North America and transports nearly 20% of the natural gas consumed in the US. In addition, they operate North America’s third-largest natural gas utility by consumer count.

Though the company’s bread and butter is the oil and natural gas business, Enbridge is increasingly expanding its focus on greener energy sources. For instance, Enbridge has built several renewable energy and power transmission projects in North America and Europe, including wind, solar, hydroelectric, and geothermal, investing more than Can$8 billion. 

In fact, one of their environmental, social, and governance (ESG) goals is to achieve net zero greenhouse gas emissions by 2050.

With Can$79.39 billion, the energy company is the 4th largest Canadian company by market capitalization as of January 2023.

Enbridge dividend history

Enbridge has paid its shareholders dividends for the past 68 years. In December 2022, the company announced a 3.2% increase to the dividend per share, raising the quarterly dividend to $0.8875, which translates into $3.55 per share annually for 2023. Over the last 28 years, the dividend has grown at an average compound annual growth rate (CAGR) of 10%.

Step-by-step process on how and where to buy Enbridge stock

Enbridge is a publicly-traded company, which means you can buy ENB stock through a regular retail broker. The steps involved in purchasing Enbridge shares are summarized in detail in the following section.

Step 1: Choose a broker

To buy Enbridge stock online, you’ll need a brokerage account. While several platforms are available, the one that suits you will depend on your investment style (long-term buy-and-hold strategy or active day trading) and needs (e.g., whether you want to trade more advanced financial products such as options). When assessing brokers, consider the following features:

• Fees: Brokerage fees are a type of fee collected by brokers to execute your transactions or provide specialized services. Fortunately, today, the vast majority of online brokers offer commission-free stock and exchange-traded funds (ETF) trading;
• Security: Pick a trustworthy broker by ensuring it is fully licensed by state regulatory authorities as well as FINRA and registered with the Securities and Exchange Commission (SEC);
• Trading tools: Active traders may prefer brokerage accounts with all the bells and whistles. Some brokers offer fully customizable platforms with comprehensive analysis tools or access to additional data for an extra cost. If such additions are unnecessary for your purposes, avoid paying extra for them. It’s typically a good idea to look for a user-friendly platform with a competitive fee structure if you are new to stock trading. A dedicated section with investing tips and tricks is a bonus;
• Access to market data: You should search for a platform that allows access to solid market research and reporting tools to help you trade confidently with updated data;
• Fractional stock trading: Fractional shares allow investors to buy stock or ETFs by the dollar amount instead of the number of shares; especially helpful for investors who don’t have unlimited capital but want to build a diversified portfolio or are looking to set up a dollar-cost averaging strategy. 

Where can I buy Enbridge stock?

Thanks to various online brokers, the stock market has never been more accessible and affordable. However, choosing the right broker optimized for your needs (investing goals, educational tools, trading style) is critical for a stress-free trading experience. 

To securely invest in Enbridge and buy ENB stock, consider Interactive Brokers (IBKR), which offers:

• Commission-free stock trading;
• Global stock-trading on 90+ market centers;
• Fractional shares available;
• Extra income on fully paid shares;
• Lowest financing rates for margin accounts in the industry;
• No account minimum. 

Best Platform for Worldwide Stock Trading & Investing

• Highly trusted multi-asset broker with clients in over 200 countries

• Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)

• Low commissions starting at $0 with no platform fees or account minimums

• Easily fund your account and trade assets in 26 currencies

• IBKR pays up to 4.58% interest on cash balances of $10k or more

Up to 4.58% interest on balance*

Get Started

Step 2: Fund your account

Once you have decided on a broker, it’s time to fund your account. Remember, it can sometimes take up to three days for the money to reach your account.

Step 3: Research the company 

When investing your money in the stock market, research is crucial. Of course, the best place to start your research on a stock is to go through its public filings with the SEC. Fortunately, as a publicly traded company, Enbridge’s SEC filings, quarterly (form 10-Q) and annual (form 10-K) earning reports, investor presentations, as well as recent press releases can be accessed directly from their investor relations section. 

Within those reports, you can find details on Enbridge’s financial performance and strategies for the future, as well as an overview of how it plans to contribute to sustainable developments, including its ESG goals. 

After weighing the expected risks and rewards, decide whether you want ENB stock as part of your investment portfolio. 

Step 4: Decide how much you want to invest

Now that you’ve decided that Enbridge stock is the right choice for you, you’ll need to determine how much you want to invest.

The amount of money you invest depends on the stock price and the number of shares you want to buy. If the share price of a stock you’re interested in is financially out of reach, you can also explore fractional shares. Fractional shares allow you to purchase shares on the dollar amount you’re comfortable with, so you may end up with less than a whole share, a whole share, or more than a whole share.

Because investing can have unpredictable returns, it’s essential only to invest what you can afford to lose and to be mindful of your risk appetite.

Step 5: Place your order and buy Enbridge stock

Once you decide on the number of shares or the dollar amount you’d like to purchase, you can place your order. If you’re working with an advisor, tell them you’d like to buy Enbridge stock and how much you can invest, and they’ll do it for you. If using a brokerage account, simply log in and enter the ticker ENB in the search bar. 

There are a few different execution options to choose from, including:

• Market order: A market order is an order to buy the stock at the current market price that is generally executed immediately (subject to availability);
• Limit order: A limit order is processed once the stock reaches your specified price. For example, imagine you want to buy Enbridge stock at $40 or lower. You would then set the limit price at $40, and the order will only execute when the stock reaches the set price or lower;
• Options contract: Options speculation allows for leveraged positions in a security at a fraction of the cost of the underlying asset. A call option allows the trader to profit if the price of the stock increases, and a put option enables them to profit if the stock price declines. Remember, derivative instruments can only be traded on a margin account, which typically has higher minimum balance requirements than standard brokerage accounts. 

Step 6: Monitor your investment

Unfortunately, oil and gas stocks tend to be more volatile than the broader market as they are sensitive to fluctuations in the supply and demand of the underlying commodities. Moreover, the sector is particularly exposed to legal and regulatory risks, often the consequence of accidents, such as oil spills.

As a result, it is paramount that you keep sporadically inspecting the company’s performance by checking the same annual and quarterly reports you used to conduct your preliminary research. However, more importantly, because oil prices are so volatile, keep an eye on the price per barrel of crude oil, which will often dictate the value of oil and gas stocks. 

However, since Enbridge is a midstream company, i.e., it is responsible for transporting, processing, and storing various fossil fuels and thus makes money charging businesses for transportation fees rather than a cut of oil sales, their profitability is less affected by oil price fluctuations. 

You can also track the performance of similar stocks in the industry for comparisons, such as Schlumberger (NYSE: SLB), EOG Resources (NYSE: EOG), and Equinor ASA (NYSE: EQNR).

So, while long-term investments in oil and gas companies can be highly profitable, investors should fully grasp the risks before investing in the sector.

Enbridge stock price today

Should I buy Enbridge stock?

Besides looking at Enbridge’s fundamentals, you can use technical analysis to evaluate the company and identify trading opportunities in price trends and patterns seen on charts. 

This gauge displays a real-time technical analysis overview for your specified timeframe. It can be a valuable technical analysis tool for many traders by simplifying trading decisions by demonstrating the real-time recommendations of popular technical indicators such as moving averages and oscillators.  

Disclaimer: TradingView does not recommend trading financial instruments based exclusively on the advice of the Technical Rating indicator. These recommendations cannot predict future movements and are meant as assistance for spotting potentially favorable buy/sell conditions if this is consistent with their strategy.

Common mistakes to avoid when investing in stocks

Mistakes are expected when investing in stocks but can be avoided if you recognize them. For an in-depth guide on investing mistakes, we have compiled a list of 17 common mistakes and tips for preventing them. But, for now, let’s list some of the most typical ones:

1. Not performing your due diligence on the stock;
2. Having unclear financial goals;
3. Attempting to time the market;
4. Failing to diversify;
5. Letting your emotions rule the investment decision-making process.

How to sell Enbridge stock?

You can sell Enbridge stock if you see the company performing differently than expected or after reaching your desired financial goal.

If you’re working with an advisor, they can create a sale order for you. However, if you have your own broker account, simply log on, navigate to the stock’s detail page, input the number of shares or dollar amount you want to offload, and tap sell.

Pros and cons of buying Enbridge stock

The ever-growing demand for energy makes the oil and gas sector a lucrative option for those looking for a high-yield investment avenue. However, like any investment in the stock market, certain risks are associated with investing in the oil and gas industry, too. 

So, to better understand whether Enbridge and oil and gas stocks, in general, are solid long-term investments and deserve a place in your portfolio, let’s break down the pros of cons:

Pros

• Oil makes the world go round (for now at least): Oil will remain one of the most significant contributors to global energy for a long time, with demand expected to keep growing until 2040, even though its share of overall energy demand is expected to shrink; 
• High dividend yield: Like most oil and gas stocks, Enbridge pays a hefty dividend yield of 7.21% (as of December 2023);
• Diversified business:  Using the cash flows from its oil and gas assets, Enbridge is expanding into clean energy, increasing the sustainability of its business as the world moves towards greener options;
• It is part of the midstream sector of the oil and gas industry: This means it is less affected by the volatility of oil prices. 

Cons

• Cyclical nature: The oil and gas sector tends to be cyclical, undergoing booms and busts; 
• Price volatility: Oil and gas stocks are particularly volatile investments since being so intertwined with the underlying commodity price. For example, gas and oil stocks plummeted from mid-2014 to early-2016 as the industry encountered substantial fluctuations in commodity prices due to the crude oil and natural gas supply surplus;
• Risk of dividend cuts: If the company cannot earn enough revenue to fund the payments to investors, dividends will be cut;
• Safety issues: Accidents, such as oil spills, can and do occur. And because of their disastrous environmental consequences, they initiate fervent media attention and political uproar, devastating the company’s reputation and causing the share price to go into free fall;
• Environmental concerns: The burning of fossil fuels produces large amounts of carbon dioxide, trapping heat in our atmosphere and leading to climate change. As a result, governments are putting increased pressure on companies to decarbonize, driving down demand for oil and gas in the coming decades. 

In conclusion

Oil and gas stocks can deliver hefty capital gains from share price appreciation as well as handsome dividend revenue during periods of high underlying commodity prices.

However, oil is a volatile asset. And while well-timed oil investments can be incredibly lucrative, with so much ambiguity surrounding the energy markets, investment in the sector will demand careful review. 

So, as always, remember to do your own independent research and have solid risk management tools in place before entering the market. Ultimately, the goal of investing is to make money over the long term, so investors should focus on where companies will be ten years from now rather than short-term fluctuations in the stock market. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

FAQs about Enbridge

Best Platform for Worldwide Stock Trading & Investing

• Highly trusted multi-asset broker with clients in over 200 countries

• Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)

• Low commissions starting at $0 with no platform fees or account minimums

• Easily fund your account and trade assets in 26 currencies

• IBKR pays up to 4.58% interest on cash balances of $10k or more

Up to 4.58% interest on balance*

Get Started