The energy infrastructure space in Canada provides investors with a few high quality investing options. The two main players in the pipeline sector in Canada are Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Pembina Pipeline (TSX:PPL); in this article, I’m going to discuss why Enbridge remains my top pick for investors considering putting some hard-earned money to work in these high-yielding equities today.
From a dividend yield perspective, Enbridge takes the cake compared to Pembina due primarily to the company’s track record of dividend growth. Enbridge has outpaced Pembina for quite some time in this regard, and has the future cash glow growth potential to support further dividend increases over time.
In many respects, the rate at which a company grows its dividend distribution over the long-term is a much more important metric than yield. Despite Pembina’s current attractive dividend yield, I’d recommend long-term investors stick with Enbridge as a top pick for this reason.
Another key consideration for long-term income investors undecided on which energy infrastructure name to choose is asset and counterparty quality. Due to its size and scale of operations, Enbridge wins in both these categories, and in the current uncertain economic environment, I view these metrics as critical for those concerned about the potential for continued volatility in this sector.
Invest wisely, my friends.
