Enbridge Poised for Growth Despite Headwinds, Offers Attractive 7.7% Dividend Yield
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Enbridge (ENB) is a large North American energy infrastructure company with a strong history of growth and predictable cash flows.
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Demand for natural gas and liquefied natural gas (LNG) is expected to rise globally, which benefits ENB's infrastructure assets. The company is also expanding into renewable natural gas.
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ENB recently acquired natural gas utility assets and expects them to be accretive to earnings. It has secured 85% of the financing needed for the acquisitions.
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ENB has increased its dividend for 29 straight years and currently yields 7.7%. The payout is well covered by cash flows.
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At current valuations, ENB trades at a discount to peers. Its price-to-cash flow multiple of 7x sits near 5-year lows despite solid growth prospects.