As far as quality and safety go in the dividend space, Enbridge Inc. (TSX:ENB)(NYSE:ENB) remains one of my top picks for long-term investors.
The energy infrastructure company has provided income-oriented investors with an impressive stream of growing dividends over time, linked to long-term trends in increasing oil consumption and growing production of oil and gas, particularly from Western Canada.
Falling commodity prices have hampered sentiment broadly in the energy sector and much more so in Canada. The approximate 25% decline in Enbridge’s stock price year to date is evidence of said sentiment.
Concerns around production levels and counterparty liquidity/solvency have bled into what can only otherwise be described as an insulated mid-market player with little in the way of exposure to commodity price risk otherwise.
The fact that Enbridge has reconfirmed its outlook for 2020 in a recent announcement indicated to me that this company’s management team is serious about maintaining its cash flow growth and dividend right now.
Various cost-cutting measures and a focus on efficiency-generation are cited as reasons for keeping previous projections intact. Should Enbridge’s management team pull this off, I expect the company’s current 7% dividend yield to shrink fast, as investors buy up shares of this otherwise undervalued gem.
Invest wisely, my friends.
