Q: How do you calculate the payout ratio for Enbridge?Some sources have it as high as 140%.
5i Research Answer:
We use operating cash flow as a metric for payout ratios. Earnings have lots of non-cash charges which can impact the ratio, but dividends are paid with cash. 12-month operating cash flow was $13.49B, dividends were $8.6B, for payout ratio of 64%.