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.
Investors need to pay close attention to Enbridge (ENB) stock based on the movements in the options market lately.
Zacks.com users have recently been watching Enbridge (ENB) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Finding defensive assets that produce tangible yields, while offering meaningful income growth, is difficult. Usually, it is possible to secure income growth and defensiveness, but having the third component - high yield - on top of that is a challenge. When there are assets that embody all three components, in my opinion, retirement or income-seeking investors should seriously consider such opportunities.
Enbridge's large-scale energy infrastructure operations make it ideally situated to capitalize on surging gas demand.
ENB Q3 earnings gain on higher Adjusted EBITDA contributions from its major business segments. Revenues rise from the prior-year level.