As far as dividend plays for those with various income needs over the long term go, energy infrastructure company Enbridge Inc. (TSX:ENB)(NYSE:ENB) has been one of my top picks for quite some time, for a wide range of reasons.
In this article, I'm going to discuss why this is still the case, and why I recommend those without any idea where to start to look at Enbridge first.
In the Canadian energy space, the broad outlook or market sentiment for the overall sector has done a complete 180 degree turn from around 10 years ago.
We went from a secular bull market and commodities driven by ever-increasing demand from China and a weak U.S. dollar post-financial crisis to a world in which Chinese growth expectations continue to decline and the U.S. dollar gains in strength as the world's reserve currency.
This bear market in commodities shows no sign of slowing and is most prominently displayed in the recent price dislocations we've seen in oil prices in recent weeks.
This pervasively negative sentiment on the broader global oil and gas sector has hit the Canadian energy patch harder than many investors may have expected to see.
Enbridge’s business model, as an integrated energy infrastructure company, insulates the company somewhat from the commodity price pressures which have ravished the sector. The company’s dividend yield, which has hovered around 8% for some time, is now one of the highest quality yields on the TSX.
Invest wisely, My Friends.
