Enterprise Products Partners has increased its distribution for 25 years. Enbridge has increased its dividend for 29 years.
Enbridge (ENB) closed at $35.79 in the latest trading session, marking a -0.86% move from the prior day.
Midstream stocks have shockingly reliable businesses in the highly volatile energy sector. Enterprise Products Partners is a master limited partnership with a huge 7.1% distribution yield.
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The change could require Enbridge (ENB) to address previously detected cracks in its extensive Lakehead pipeline system, including the contentious Line 5.
Since midstream operations have lower exposure to volatility in commodity prices, the outlook for the Zacks Oil and Gas - Production & Pipelines industry is bullish. Enbridge (ENB), Williams Companies (WMB), Kinder Morgan (KMI) and MPLX are the frontrunners in the industry.
In the latest trading session, Enbridge (ENB) closed at $35.38, marking a -0.65% move from the previous day.
Assuming a 3% annual dividend growth, would Enbridge's common shares have a higher perceived value than the company's preferreds over the next 5 years? Enbridge common shares yield 7.52% after the June price drop, close to the yield of (ENB.PR.N:CA) preferred shares after reset. Enbridge fundamentals are strong, but Wall Street is less bullish. I downgrade common shares to Hold, as preferreds offer better value.
Energy Transfer and Enbridge's pipelines transfer oil and gas throughout North America. Both companies feature juicy dividend yields backed by solid financials.
Enbridge is one of the highest-yielding energy stocks. It also has one of the longest dividend increase streaks in the energy sector.
In June, I aggressively bought three of my top high yield blue-chip ideas, tripling my share count in some of these companies. With an average yield of 7%, growing 10% per year, being 19% undervalued, and having 32% upside potential in the next year, BTI, ENB, and BAM offer incredible short-and long-term opportunities. Enbridge's Line 5 concerns are way overblown, and its yield is at historical extremes that generate 13% long-term total return guidance from management.
With a significant portion of its assets being contracted by shippers for the long term, Enbridge's (ENB) business model is less exposed to volatility in oil and gas prices.