Looking at the five-year stock chart of most oil producers, investors may get a bit squirmy, and for good reason.
Stock prices are in the tank for many oil producers, as serious headwinds loom around every corner, seemingly halting any advance in optimism among the general public, to the chagrin of investors.
That said, the stock chart of Enbridge Inc. (TSX:ENB)(NYSE:ENB) isn't quite as gloomy, and for good reason. The firm is well-diversified, with holdings outside of oil and gas production; additionally, the oil and gas operations Enbridge does have are vertically integrated nicely into the firm's operations, boosting the company's bottom line, something conservative long term investors such as myself really appreciate.
Enbridge's midstream operations are particularly in focus for me - with heavy crude and natural gas pipelines (even its pipeline operations are diversified) remaining attractive assets, despite the regulatory overhang which persists on its two key line extensions in the U.S.
Enbridge is a stock which yields more than 6%, with very stable cash flows I expect to increase over time, as well as a dividend disbursement which I also expect to increase over time (in the double digits, nonetheless).
There is little not to like about Enbridge for investors looking for relatively safe stocks with decent dividend yields, in this current environment. I believe Enbridge's stock has hit a floor which will be hard to break, unless we really do hit rock bottom economically in the near-term, something I don't think (and certainly don't hope) is likely.
Invest wisely, my friends.
