Canadian midstream company Enbridge said on Tuesday that it plans to invest $2.5 billion in its liquids and natural gas systems, with $2 billion allocated to its Mainline network through 2028.
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Enbridge's strong fundamentals drive premium valuations with high growth expectations, but there remains some uncertainty.
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Hundreds of companies pay dividends. Many offer dividend yields well above average (the S&P 500 's dividend yield is around 1.2%).
Enbridge, worth nearly $100 billion, continues to invest massively, offering a 6%+ dividend yield and strong shareholder returns despite balance sheet concerns. In 2024, Enbridge achieved double-digit adjusted EBITDA growth, driven by a $19 billion CAD acquisition and new organic growth, maintaining 30 years of dividend increases. The company excels in liquids, gas, and renewable energy segments, with significant projects and predictable cash flows, supporting its utility-like business model.
ENB Q4 earnings and revenues beat estimates, driven by higher Adjusted EBITDA contributions across its key business segments. Revenues also increase from the prior-year level.
Midstream energy stocks have been anything but middling performers recently. Just look at Enbridge (ENB -3.83%) and Energy Transfer LP (ET 0.86%).
Enbridge is a steady but slow grower with 3% dividend growth expected over the next couple of years, possibly increasing to 5%. Enbridge common shares are downgraded to Hold due to recent price increase, making preferred shares more attractive for income over the next six years. Preferred shares Series L, Series 1, and Series 5 are rated Buy, with Series L becoming more attractive due to its nearest reset date.
Enbridge Inc. (NYSE:ENB ) Q4 2024 Earnings Conference Call February 14, 2025 9:00 AM ET Company Participants Rebecca Morley - Vice President, Investor Relations Greg Ebel - President and CEO Pat Murray - Executive Vice President and CFO Colin Gruending - President, Liquids Pipelines Cynthia Hansen - President, Gas Transmission and Midstream Michele Harradence - Head, Gas Distribution and Storage Matthew Akman - President, Renewable Power Conference Call Participants Jeremy Tonet - JPMorgan Robert Catellier - CIBC Capital Markets Ben Pham - BMO Capital Markets Manav Gupta - UBS Maurice Choy - RBC Capital Markets Rob Hope - Scotiabank Theresa Chen - Barclays Rebecca Morley Good morning. And welcome to the Enbridge Inc. Fourth Quarter 2024 Financial Results Conference Call.
Enbridge (ENB) came out with quarterly earnings of $0.53 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.47 per share a year ago.