Enbridge: Yielding 6.03% And A Quintessential Infrastructure Play For Income Investors

Enbridge: Yielding 6.03% And A Quintessential Infrastructure Play For Income Investors


Enbridge is a secure high-yielding dividend icon with 27 years of consecutive increases, more than 6 decades of dividend payments, and a strong coverage ratio.

Enbridge is the only energy infrastructure company that operates a massive pipeline network, 90,000+ miles, has its own utility company, and billions invested in renewable projects.

Enbridge continues to invest for the future, increasing its capacity and exporting capabilities to meet the future global demand for energy.

I think that Enbridge is an opportunity to gain consistent growing dividends and recognize capital appreciation in the future.

I do much more than just articles at Barbell Capital: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

JHVEPhoto/iStock Editorial via Getty Images Enbridge ( ENB ) is having a great year as it’s appreciated by 27.13% since March of 2021. ENB has also appreciated by 14.51% in 2022, and unlike many other energy infrastructure companies, ENB has reclaimed becoming a positive investment over a 5-year period. The road has been tough and traditional energy has been under attack, but ENB is a critical component for North America’s infrastructure. My heart breaks for the people of Ukraine, and this has been a catastrophic event that is absolutely devastating. Nothing good comes from war, and I wish that in 2022 wars that result in the loss of human life were a thing of the past, but that’s not reality. The reality is that the world is a cold place, and wars have been fought for thousands of years for countless reasons. This event has placed a spotlight on energy, and I think people are finally accepting the fact that we need oil & gas. As the largest Superpower globally, America should be energy independent and support our NATO allies with cheap American fuel. I am not anti-renewables, and I have always said that this is an all the above solution, not one or the other. We should be increasing investments in renewable sources of energy, including wind, solar, geothermal, biomass, and hydroelectric, while adding nuclear capacity and increasing the production of oil & gas.

ENB is a triple threat energy infrastructure company that is one of a kind. Enbridge is the only energy infrastructure company that operates a massive pipeline network while having its own gas utility company and large renewable energy portfolio that I know of. The way ENB has positioned its portfolio as an all the above approach is a great strategy as all the sources of energy ENB focuses on are critical not just for today but for decades to come. ENB has paid dividends for over 67 years to its shareholders and has increased its dividend for the past 27 years consecutively. ENB’s infrastructure will continue to drive distributable cash flow growth to support future dividend increases while moving the energy that’s required to support North America and countries abroad. Enbridge Enbridge is incredibly diversified, driving revenue from all aspects of the energy landscape

You’re not going to find a more diversified energy infrastructure company in North America. ENB operates 4 business segments which include liquids pipelines, natural gas pipelines, gas distribution & storage, and renewable energy. ENB operates the world’s longest crude oil and liquids transportation system, spanning 17,809 miles. This pipeline system connects 9,299 miles of pipe in America to 8,510 miles of pipe in Canada. More than 3 million barrels of crude and liquids are delivered each day through this system. ENB transports roughly 30% of the crude produced in North America and connects around 65% of Canadian export bound fuel to the market. ENB’s second business segment is its natural gas pipeline infrastructure. ENB’s natural gas network moves about 20%of all gas consumed in the U.S. as its pipelines cover 76,546 miles across 30 states and 5 Canadian provinces. ENB transports 21 BCF/d of natural gas and has 161.7 Bcf of storage capacity.

ENB is the only midstream operator that I know of that has its own utility company. Enbridge Gas Inc. serves approximately 75% of Ontario residents. ENB delivers utility services through 3.9 million residential, commercial, institutional, and industrial meter connections and distributes about 4.9 Bcf/dof natural gas to about 15 million people in Ontario and Quebec. ENB also has one of the largest renewable energy portfolios from any infrastructure company. Their energy projects have the capacity to generate 5,179 megawatts through 23 wind farms, 17 solar operations, and other renewable projects. Enbridge While ENB’s business segments look impressive, it comes […]

source Enbridge: Yielding 6.03% And A Quintessential Infrastructure Play For Income Investors

Leave a Reply