Shares of Enbridge Inc. (TSX:ENB)(NYSE:ENB) were up 0.04% at the top of the noon hour on November 6th. The stock has fallen over 5% since releasing its third-quarter results on November 2nd. The company posted net earnings of $765 million in the quarter compared to a net loss of $103 million the previous year, but investor sentiment sunk due to other factors.
Perhaps most prominent is the anxiety surrounding the ongoing Line 3 Alberta-Wisconsin pipeline replacement. Enbridge has been in a bitter fight with regulators in Minnesota in an attempt to prove that the replacement is justified. It has also faced an assortment of protestors as the project still hangs in the balance.
The stock has dropped 17% in 2017 and 15% year over year. Due to these controversies Enbridge has unfortunately not been able to see its stock rally with oil prices. Spot oil prices reached above the $57 mark at the bottom of the noon hour on November 6th which is giving renewed confidence to the Canadian energy sectors. It needs it after recent GDP in August showed slumping results in the oil and gas sector.
In spite of its difficulties, Enbridge leadership remains confident that it will be able to deliver its attractive dividend along with continuous dividend growth. Currently the stock boasts a dividend of $0.61 per share representing a 5.2% dividend yield. With a plethora of projects still in its pipeline and oil prices looking strong heading into 2018 Enbridge could be a bargain under the $50 mark as it stands right now.
