Another attractive stock I found was the Enbridge Income Fund Holdings Inc. (ENF). I also utilized the same strategy as follow:
- Annual Revenue Growth > 0% and Current data > Last 4 Quarters;
- Net Profit Margin – Average 3 Year & Average 5 Year > 10%;
- ROE – Average 3 Year & Average 5 Year > 15%;
- Debt Ratio < 0.5;
- Free Cash Flow > 0;
- Operating Cash Flow to Net Income Ratio > 0.5;
- Dividend – Current > Average 3 Years > Average 5 Years;
- Dividend Yield > 6%.
However on this pick, I decided to focus more on the dividend yield since I would like to receive steady extra income every month.
The spreadsheet analysis is below:
The price was around $29.55 in November when I performed the analysis. At that time, the dividend yield was 6.80%. Although some criteria has not been met, I still decided to purchase the shares on ENF. One reason would be the financial performance of ENF was a lot better than the industry. The other reason was that ENF has investment on oil and gas properties and the oil price was getting more stable comparing to couple years ago. Once the oil price is more stable, the market prices for most oil and gas companies will increase. Also, ENF has a plan on growing the dividend by 10% every year for the next couple years. The dividend from ENF will be a stable income flow for my investment.
Disclosure: The market price of ENF while writing this post is $29.13.
Continue to: Addition on Spreadsheet Template – Piotroski F-Score.
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