Investors looking for safe dividends along with capital appreciation are many; a company with a strong dividend yield and lots of capital appreciation upside are few and far between. In my book, Enbridge Inc. (TSX:ENB)(NYSE:ENB) continues to be one of the few plays (especially in the oil & gas sector) which investors can look to for dividend and capital appreciation growth over a long period of time.
The quality of assets on Enbridge’s portfolio are complemented by the company’s continuously growing portfolio of new projects and acquisitions which run alongside the business’ core pipelines currently in operation.
These assets are relatively removed from the upward or downward movements in oil prices, making this company an interesting play in the oil & gas sector as it is one of the few businesses that can actually continue to make money (in some cases, more money) in lower commodity price environments.
With a dividend of more than 4.7%, Enbridge continues to be a favorite among yield-focused investors looking for stable and growing businesses to put their hard-earned capital into. With cash flow generally expected to grow in the 12%-14% per year range in the case of Enbridge, investors looking for long-term dividend growth can expect to do very well by investing in Enbridge today and continuing to invest over time.
I have said for a long time that dividend growth often surpasses current dividend yield in terms of importance for investment attributes I look at, given the long-term game that is investing.
Invest Wisely, my friends.
