Out of all the companies on the Toronto Stock Exchange (TSX), Enbridge Inc. (TSX:ENB)(NYSE:ENB) is by far one of my favourite options for long-term investors focused on generating income over a sufficiently long period of time.
Enbridge is best known for its various pipeline assets and projects, such as its line 3 expansion project, but it also diversified upstream and downstream, providing investors with a level of stability few other energy infrastructure companies can.
Right now, Enbridge’s yield stands at approximately 5.8%, a very nice yield for such a high quality company, given the fact we’re continuing to see bond yields decrease and interest rates decline, with no end in sight for this trend.
From a dividend perspective, if I had to pick one company based on current yield and safety, Enbridge would probably be my top pick right now.
Another reason to like Enbridge’s dividend is the annual distribution increases which can almost be guaranteed to be in the high single digits each and every year for investors, based on historical performance and the assets underpinning the company.
As far as Enbridge’s pipeline assets go, I’d say the Line 3 expansion is the key asset investors should focus in on, given the fact this project has had a much smoother pathway to completion and has the opportunity to provide investors with meaningful long-term returns, as the project’s budget was not completely thrown out of whack like the TMX project the government is now fumbling.
The long-term outlook for Enbridge remains bright, in my opinion, and this solid financial future I think will pave the way for continued dividend increases over time, and the potential for some nice capital appreciation as well.
Invest wisely, my friends.
