I am upgrading Enbridge to Buy, driven by new Canadian pipeline projects and favorable political changes supporting infrastructure expansion. Global diversification of oil sales, especially to Asia and Europe, is set to boost Enbridge's profitability beyond current long-term growth targets. Lower interest rates in Canada and the US, prompted by trade tensions and tariffs, should enhance Enbridge's share valuation and investor appeal.
The combination of high volatilities and a few fundamental economic forces could lead to much higher oil prices in the near future. The OPEC+'s production decision, Iran situation, and also ongoing tariff disputes could keep oil price volatility elevated. The refilling of the SPR (strategic petroleum reserve) and persisting inflation both act as upward pressure on oil prices.
In the latest trading session, Enbridge (ENB) closed at $45.21, marking a +1.48% move from the previous day.
Enbridge remains a 'buy,' due to solid growth prospects, robust demand for energy, and a strong management growth plan, despite recent underperformance, versus the S&P 500. Recent financials show strong revenue and EBITDA growth, especially from Gas Distribution and Storage, boosted by acquisitions and rate increases. Management forecasts continued EBITDA and cash flow growth through 2026, supported by $28 billion in secured capital projects and substantial investment capacity.
Enbridge's robust DCF easily covers both common and preferred dividends, with preferred payouts requiring just 3% of pre-dividend DCF. The Series 11 preferred shares offer a 6.6% yield, fixed until 2030, providing an attractive risk/reward profile versus Canadian government bonds. A hybrid approach—owning both common and preferred shares—balances upside participation with stable, high-yield income.
I rate Enbridge a Buy for its multi-decade dividend growth, stable cash flow, and strategic acquisitions fueling long-term growth. The company's low-risk, fee-based contracts and strong segment performance support reliable income and future dividend increases. Despite trading at a premium and carrying significant debt, Enbridge's financial health and investor confidence justify its valuation.
In the latest trading session, Enbridge (ENB) closed at $44.15, marking a -1.32% move from the previous day.
Recently, Zacks.com users have been paying close attention to Enbridge (ENB). This makes it worthwhile to examine what the stock has in store.
In the first six months of 2025, the stock market has been on a roller-coaster ride, hitting both lows and highs driven by trade tariff uncertainties and geopolitical tensions.
The U.S. Supreme Court agreed on Monday to hear Enbridge's bid to change the venue of Michigan's lawsuit seeking to force the Canadian pipeline operator to stop operating a pipeline underneath the Straits of Mackinac, waterways linking two of the Great Lakes, over environmental concerns.
Enbridge offers a top-tier income growth opportunity, driven by a diversified, fee-based business model and an ambitious $28B capital investment framework. The company boasts robust dividend coverage, a 6% distributable cash flow growth, and a 3% dividend increase, supporting its long-term dividend growth record. Acquisition-driven growth, especially in U.S. natural gas utilities, has significantly boosted adjusted EBITDA and underpins future distributable cash flow expansion.
The latest trading day saw Enbridge (ENB) settling at $45.08, representing a +1.35% change from its previous close.