ENB and PAA/PAGP are leading midstream businesses with attractive yields and strong balance sheets. ENB has a better long-term track record than PAA/PAGP, but PAA/PAGP has outperformed ENB recently. We compare them side-by-side and explain why we think only one of these is a Buy right now.
Enbridge is a large and diversified midstream company. The shares have risen 15% over the past six months compared to a 5% gain for the average energy stock.
Stable fee-based revenues and a solid backlog of growth projects have made ENB's overall business outlook positive.
Leading pipeline Enbridge will pipe prodigious passive income into your portfolio. Norway's Equinor continues to reward investors with its latest monster payout.
Enbridge stock has performed well since I last covered it, with a total return of nearly 34% in 10 months, slightly underperforming the S&P 500. Financial metrics show an increase in net debt and tangible invested capital due to the Dominion deal. Share dilution and financing costs from the Dominion deal are currently weighing on ENB's earnings.
Enbridge has increased its dividend in each of the last three recessions. The energy infrastructure company generates a very stable cash flow and has a rock-solid financial profile.
Enbridge is one of North America's largest midstream companies. At the current share price, its dividend yields a hefty 6.9%.
Unevenness in ENB's Q2 results reflected some headwinds ahead. These issues include oil price uncertainties, operating costs, and also financing costs. However, I see plenty of earnings and return catalysts that can offset these issues and deliver robust total shareholder returns.
Energy pipeline company Enbridge has increased its dividend at a 10% rate over the past 29 years. Home improvement giant Home Depot has a long track record of raising its dividends.
Enbridge expects oil demand will continue rising. Higher oil volumes would boost the cash flows of its liquids pipelines business.
Midstream companies' pipeline assets are secured under take-or-pay contracts. Williams (WMB), Kinder Morgan (KMI), & Enbridge (ENB) are thus poised to gain.
Enbridge (ENB) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.