Conservative capital spending by upstream players and gradual shifting to renewables may hurt the demand for midstream players' assets. Enbridge (ENB), Kinder Morgan (KMI), The Williams Companies (WMB) and MPLX are surviving the industry challenges.
Enbridge is just outside of my portfolio's top 20 holdings. The midstream juggernaut's adjusted EBITDA climbed higher in the second quarter. ENB enjoys investment-grade credit ratings from the major rating agencies.
ENB's strong fundamentals drive premium valuations with high growth expectations, but there remains some uncertainty.
Enbridge offers a 6.7% dividend yield, supported by steady cash flows, inflation protection, and robust growth prospects in energy infrastructure and utilities. Rexford Industrial boasts strong FFO growth and a 3.3% yield, driven by in-demand properties in Southern California and high lease spreads. Both ENB and REXR provide reliable income and growth potential, making them ideal for investors seeking financial freedom through dividend growth.
Enbridge backs its huge 6.6% dividend yield with a diversified energy business that's slowly adjusting to the world's energy needs. Kinder Morgan's dividend has continued to rise despite a changing interest rate environment over the last several years.
Money market funds have seen massive inflows, but rate cuts are making them less attractive. Investors may soon rotate out as yields decline further. High-quality dividend stocks offer a strong alternative to cash, providing reliable income, safety, and inflation protection even in a low-rate environment. Two undervalued stocks yielding 7% and 8% are ideal for income seekers, combining solid fundamentals with attractive growth potential and stable payouts.
With a significant portion of its assets being contracted by shippers for the long term, ENB's business model is less exposed to volatility in oil and gas prices.
Enbridge has paid dividends for decades. The company's high-yielding payout is on a very sustainable foundation.
The interest rates have started to gradually come down, where the consequences of it could already be seen across the dividend landscape. On the one hand, this implies an immediate portfolio value increase, which is obviously not a negative. On the other hand, the reducing interest rates push down the discount rates, which, in turn, inflate asset prices. This has a direct negative and mathematical effect on the dividend yields.
Enbridge (ENB) closed at $41.09 in the latest trading session, marking a +0.56% move from the prior day.
In this article I discuss methods for finding undervalued stocks. Then we discuss Enbridge preferred stock symbol EBBNF (ENB.PF.U on the Toronto Exchange). And then I document why we believe this Enbridge preferred stock is the best U.S. dollar denominated investment grade preferred stock in the market right now.
The Federal Reserve has finally started reducing interest rates. That should lower Enbridge's borrowing costs, enhancing its cash flow and growth prospects.