Recently, Zacks.com users have been paying close attention to Enbridge (ENB). This makes it worthwhile to examine what the stock has in store.
Enbridge (ENB 0.34%) recently reached a new milestone for dividend growth. The Canadian pipeline and utility operator has now increased its payment for 30 straight years after boosting its payout by 3% for 2025.
Two Canadian midstream names have offered guidance for EBITDA and dividend growth in 2025. TC Energy Corporation (TRP) and Enbridge (ENB) recently provided 2025 financial guidance.
Enbridge and Enterprise Products Partners are top-tier midstream companies, akin to Coke and Pepsi, offering robust dividends and stable cash flows. Both companies have extensive pipeline networks and diversified contracted revenue streams, making them resilient to economic and energy price fluctuations. Enbridge's strategic acquisitions and Enterprise's strong balance sheet enhance their long-term growth prospects, which analysts estimate at 6% to 7% long term.
Dividend stocks can be terrific investments. In addition to generating dividend income, they have historically produced strong total returns.
Enbridge's stable cash flows, recent acquisitions, and attractive pricing support its continued 'buy' rating despite mixed profitability metrics and rising interest expenses. The company's significant revenue growth, strategic investments in renewable energy, and robust future cash flow projections highlight its potential for sustained growth. Management's plans for substantial capital investments and maintaining a healthy leverage ratio reinforce confidence in Enbridge's long-term prospects.
ENB and BIP have impressive track records of generating attractive total returns and consistent inflation-beating dividend growth. They are both high-quality diversified infrastructure companies with defensive, inflation-resistant models. I compare them side-by-side and share my view on why only one is a buy right now.
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.
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