In the closing of the recent trading day, Enbridge (ENB) stood at $41.87, denoting a +0.17% change from the preceding trading day.
Enbridge's shares have gained 15% YTD in 2024, but are still undervalued, in my opinion. Growth from recent natural gas acquisitions and a positive FY 2025 guidance are two reasons to buy ENB. Enbridge's dividend growth is appealing, although ENB has been outperformed by Enterprise Products Partners and Kinder Morgan in terms of dividend growth in the last 5 years.
In the closing of the recent trading day, Enbridge (ENB) stood at $41.80, denoting a +1.04% change from the preceding trading day.
Enbridge's stock and preferred shares are strong buys, offering attractive dividend yields of 6.5% and 7%+ respectively, backed by solid fundamentals and growth prospects. The company's diversified growth projects and strong financial metrics ensure stable cash flow and dividend safety, with a forecasted 9% adjusted EBITDA growth. ENB's valuation is compelling with a fair value estimate of $52.40, presenting a 27% upside potential from the last close of $41.37.
Enbridge's (ENB 1.62%) 6.4% dividend yield is going to make up the lion's share of an investor's return over time. That's to be expected for an ultra-high-yield stock.
It's natural that income investors would be attracted to stocks with exceptionally high dividend yields. The higher the yield, the more income they'll receive, assuming the businesses are reliable cash generators.
Enbridge Inc. boasts a $100 billion market cap, a 6% dividend yield, and a robust asset portfolio, positioning ENB stock for future growth. The company's mainline pipeline is crucial, with a forecast of 3 million barrels/day and expansion plans in the Permian Basin and Gulf Coast. Despite strong EBITDA growth, Enbridge's reliance on debt for funding raises concerns about its financial stability and potential dividend cuts.
Midstream companies are vital to the energy sector. They gather, process, transport, store, and export crude oil, natural gas, and related products.
Enbridge Inc.'s Q3 financials reflected some headwinds, which are all temporary in my view. Long-term growth is intact, thanks to rising electricity demand from AI and digital applications, ENB's strategic position, and aggressive capital expansion projects. The near-term issues caused price corrections and pushed up Enbridge's yield to be well above its long-term average.
Enbridge has demonstrated strong performance with record Q3 EBITDA, and strategic acquisitions, reinforcing its growth potential. ENB's diversified portfolio in crude oil, natural gas, utilities, and renewables, coupled with a 6.3% dividend yield, makes it attractive for income-focused investors. Management's guidance for 7-9% annual EBITDA growth through 2026, supported by a $27 billion project backlog, highlights robust future growth prospects.
The S&P 500 index (^GSPC -0.00%) is yielding a scant 1.2%. By comparison, the 6.3% yield on offer from Enbridge (ENB -0.33%) and the 6.4% from Enterprise Products Partners (EPD -0.62%) are huge!
When Wall Street gets its teeth into a story, it can lead to strange outcomes. For example, Kinder Morgan (KMI -0.07%) has seen a material price advance and now yields a relatively tiny 4.1%.