ENB - 1 Magnificent Dividend Stock Down 30% to Buy and Hold Forever
2024-05-17 04:12:00 ET
Enbridge (NYSE: ENB) is not an exciting company, but that's really part of management's plan. It is designed to generate reliable and growing cash flows that it can use to pay investors a reliable and growing dividend. With 29 years' worth of annual dividend increases, the Canadian energy company has clearly lived up to the plan. However, the stock is still down materially from its highs, which income investors should probably view as a buying opportunity.
Enbridge is a North American energy giant that is usually lumped into the midstream sector. That makes logical sense, given that, historically, around 57% of its earnings before interest, taxes, depreciation, and amortization ( EBITDA ) came from oil pipelines, with another 28% from natural gas pipelines. That sums up to roughly 85%, which is a very big number. The rest of the business had been broken down between a natural gas utility (12% of EBITDA) and renewable power investments (3%).
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1 Magnificent Dividend Stock Down 30% to Buy and Hold Forever