Enbridge is a top pick for income investors due to its extensive energy infrastructure, 29 years of consecutive dividend growth, and a yield exceeding 6%. A pro-energy Trump administration and lower interest rates are expected to benefit ENB, enhancing its profitability and ability to refinance high-rate debt. ENB's diversified operations in crude, natural gas, and renewables, along with its wide moat, position it well for future growth amid increasing energy demand.
Retirement income investing at its core is about not touching the principal and enjoying high and durable dividends. While it sounds simple, it actually requires a careful and diligent security selection process. The key is to find a balance between high yield (risk) and safety.
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.
With a significant portion of its assets being contracted by shippers for the long term, ENB's business model is less exposed to volatility in oil and gas prices.
2 Durable Dividend Stocks That Have Delivered Decades of Stability and Growth
Enbridge outperformed the U.S. equity market with a 10% total return since August 21, driven by strong Q3 earnings and a 6.2% forward dividend yield. The company expects steady growth in distributable cash flow and adjusted EBITDA, despite high interest expenses, supported by North America's thriving energy industry. Enbridge's intrinsic value is estimated at $49 per share, offering a 14% upside potential, with a revised dividend discount model reflecting a less aggressive cost of equity.
Market valuation is high, posing challenges for investors seeking value. Current conditions make it crucial to navigate carefully and avoid overpriced assets. This also puts tremendous pressure on the incoming president, as markets provide zero room for error when it comes to growing GDP and corporate earnings. My portfolio prioritizes solid, undervalued dividend payers that offer stability and income. These selections align with a cautious approach in an uncertain market.
Kinder Morgan has let investors down multiple times, but these two high-yield alternatives have been reliable through thick and thin.
High-yield stocks can fall due to non-dividend sustainability reasons, presenting opportunities for income investors to lock in attractive yields. In this article, I have identified two picks, which now yield about 9.5%. The beauty of both of these picks is that their fundamentals are sound and the dividends could be deemed sustainable.
These companies pay lucrative dividends.
Enbridge's 6.2% yield and 29-year dividend hike track record make it a reliable income source, with $27 billion in growth projects enhancing its future potential. A potential tailwind from $6.5 trillion in money market funds could drive investors to high-quality dividend stocks like Enbridge as interest rates decline. Enbridge's mission-critical North American energy infrastructure and strategic expansions in natural gas and offshore pipelines position it well for long-term growth.
Enbridge is an all-weather income stock.