Enbridge (ENB) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
In the latest trading session, Enbridge (ENB) closed at $44.28, marking a +0.59% move from the previous day.
Enbridge will generate incremental cash flows from its huge backlog of secured and profitable midstream capital projects.
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Enbridge is now a top 10 holding in my portfolio. The midstream operator benefits from both a promising industry outlook and an extensive pipeline of projects currently in development. Given the stability of its underlying cash flows, Enbridge's balance sheet is sensibly leveraged.
We previously had decided to sell all Enbridge preferred shares, including the long-held ones. That was the correct decision at the time. The preferred shares have dropped hard in recent days, setting up a great reentry.
Enbridge offers a 6.3% dividend yield, supported by 95% of cash flows from regulated or long-term contracts, ensuring stability across economic cycles. Despite near-term concerns like tariffs, ENB's diversified asset base and strong U.S. exposure position it well for long-term growth. ENB's strategic acquisitions and organic growth have delivered predictable cash flows, with management guiding for continued DCF/share growth.
Enbridge (ENB) concluded the recent trading session at $41.77, signifying a +1.65% move from its prior day's close.
High-yield, low-volatility dividend aristocrats can provide Buffett-like returns, especially when bought at undervaluation and sold at overvaluation. I swapped Enbridge for Enterprise Products Partners due to better credit rating, higher yield, tax efficiency, and superior medium-term return potential. Market corrections enhance value, growth, and non-correlated assets, making strategic rebalancing essential for maximizing long-term returns.
My earlier EBITDA growth acceleration thesis is playing out nicely, and there are many long term demand-side tailwinds that Enbridge is poised well to benefit from. US tariffs on Canadian imports may impact O&G prices but are unlikely to reduce crude oil volumes transported, insulating Enbridge's operations. Enbridge is reaping the rewards of a good US Gas Utilities M&A deal via an EBITDA increase in its Gas Distribution and Storage Portfolio.
Demand for natural gas will surge in coming years. Catalysts like the onshoring of manufacturing, the electrification of everything, and artificial intelligence (AI) data centers will drive up power demand.
Enbridge (ENB) closed at $45.34 in the latest trading session, marking a +0.44% move from the prior day.