Investing in the stock market can be a great way to increase your income. Stocks that pay a dividend aren't doing well these days as high interest rates make for enticing alternatives, but that can present an attractive opportunity to load up on them, as many are offering attractive payouts.
Markets are rotating away from U.S. stocks, but I'm doubling down on undervalued American companies built to last decades, not chase trends. Political noise and short-term trading dominate headlines, but successful investing means ignoring hype and sticking to quality-forever holdings. My strategy focuses on durable businesses with wide moats, strong cash flows, and dividends - companies that thrive in any market environment.
The stock market has been pretty turbulent to start this year. That volatility has created a lot of uncertainty among investors.
Enbridge's (ENB -0.76%) big draw as an investment is its highly reliable dividend, which it has increased annually (in Canadian dollars) for three decades. There's just one problem for investors: The dividend growth rate for this Calgary-based pipeline operator has stalled over the last couple of years.
Enbridge's preferred shares are highly attractive due to their strong coverage, requiring only 3% of pre-dividend DCF to cover preferred dividends. The Series 3 preferred shares offer a current yield of approximately 7.02%, with the dividend rate reset every five years based on the Canada bond yield. Enbridge's common shares also provide a robust dividend yield (~6%) and potential capital gains, making a mix of common and preferred shares a sensible investment strategy.
Ideally, income seeking investors want to receive the maximum amount of dividends for the price they pay for one share of a dividend paying business. In investing parlance, this means seeking out stocks with higher dividend, or distribution, yields, or higher forward 12-month dividends per share for the current price of one share.
The latest trading day saw Enbridge (ENB) settling at $43.87, representing a -0.81% change from its previous close.
Recently, Zacks.com users have been paying close attention to Enbridge (ENB). This makes it worthwhile to examine what the stock has in store.
Midstream players secure additional cashflows from their huge backlog of growth projects, which brightens the outlook for the Zacks Oil and Gas - Production and Pipelines industry. Some of the frontrunners in the industry are ENB, KMI, WMB & MPLX.
Enbridge will generate incremental cash flows from its huge backlog of secured and profitable midstream capital projects.
Enbridge (ENB 1.49%) has been a very enriching investment over the years. The Canadian pipeline and utility giant has paid dividends for over 70 years, with increases in each of the last 30 years.
Enbridge (ENB) reachead $43.50 at the closing of the latest trading day, reflecting a +1.56% change compared to its last close.