Recently, Zacks.com users have been paying close attention to Enbridge (ENB). This makes it worthwhile to examine what the stock has in store.
Canada's Enbridge is one of the largest midstream energy companies in North America. The stock's 6.6% dividend yield is backed by 29 consecutive annual dividend increases.
As interest rates decline, investors will likely shift from cash to high-yield, low-risk investments, benefiting Enbridge's preferred and common shares. Three recently reset preferred shares of Enbridge offer dividend yield above 7.5% fixed for the long term. Four preferreds will be reset within one year, resulting in up to a 90% increase in dividends.
Enbridge's valuation has surged to over $40/share, making it less attractive compared to our initial buy at $31.7/share. Despite solid operational performance and growth prospects, the current price limits upside potential, prompting a "Hold" rating. Enbridge remains a safe income investment in the NA energy sector, but we recommend buying only below $36/share for optimal returns.
Enbridge's new Series 4 preferred shares offer a quarterly floating dividend based on the three-month Canada Government bond rate plus 238 bps. The initial dividend yield is 8.65%, but future dividends may decline as short-term interest rates decrease. Series 4 shares are speculative, relying on short-term interest rates, while Series 3 offers a fixed yield for five years.
W.P. Carey takes much of the risk out of owning and leasing commercial real estate. Pipeline operator Enbridge isn't as closely linked to energy prices as you might expect.
ENB plans to evacuate its staff from three offshore platforms. The platforms are likely to continue operations via remote operators.
In the most recent trading session, Enbridge (ENB) closed at $40.79, indicating a +0.99% shift from the previous trading day.
Enbridge reported strong Q2 results with moderate EBITDA and distributable cash flow growth. The company's diversified energy portfolio and solid dividend coverage profile make it a reliable income investment, in my opinion. Data Centers' energy demand is a key growth driver, boosting Enbridge's EBITDA and distributable cash flow prospects.
Enbridge's strong financial performance, disciplined capital allocation, and favorable macro environment support my "Strong Buy" rating with a compelling 6.75% forward dividend yield. Recent earnings surpassed expectations with 8% adjusted EPS growth, despite a slight dip in DCF per share due to higher financing costs and taxes. Enbridge is well-positioned to benefit from growing energy demand and the thriving LNG industry, with significant investments in natural gas infrastructure.
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