Many investors probably want a hiding place with the ongoing turbulence in both the stock and bond markets. Enbridge Inc. stock is an appealing idea as an equity bond due to several reasons. Its remarkable history of consistent dividend payments – similar to the coupons from bonds – demonstrates the durability of its moat.
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Enbridge (ENB 1.70%) is one of the largest midstream companies in North America. That said, it is a Canadian company and a big part of its business is moving Canadian oil and natural gas down into the United States.
The stock market has plunged nearly 15% from its recent high due to concerns that tariffs could cause a recession. It could continue sinking if those fears turn into reality.
Enbridge (ENB) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
In the latest trading session, Enbridge (ENB) closed at $44.28, marking a +0.59% move from the previous day.
Enbridge will generate incremental cash flows from its huge backlog of secured and profitable midstream capital projects.
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Enbridge is now a top 10 holding in my portfolio. The midstream operator benefits from both a promising industry outlook and an extensive pipeline of projects currently in development. Given the stability of its underlying cash flows, Enbridge's balance sheet is sensibly leveraged.
We previously had decided to sell all Enbridge preferred shares, including the long-held ones. That was the correct decision at the time. The preferred shares have dropped hard in recent days, setting up a great reentry.
Enbridge offers a 6.3% dividend yield, supported by 95% of cash flows from regulated or long-term contracts, ensuring stability across economic cycles. Despite near-term concerns like tariffs, ENB's diversified asset base and strong U.S. exposure position it well for long-term growth. ENB's strategic acquisitions and organic growth have delivered predictable cash flows, with management guiding for continued DCF/share growth.
Enbridge (ENB) concluded the recent trading session at $41.77, signifying a +1.65% move from its prior day's close.