ENB - A Once-in-a-Generation Investment Opportunity: 1 High-Yield Dividend Stock to Buy Now and Hold Forever This April
2024-04-02 04:26:00 ET
Enbridge (NYSE: ENB) has been an exceptional investment over the decades. The Canadian pipeline and utility operator has delivered more than an 11% compound annual total return over the past 20 years. That has outpaced the S&P 500 and its nearly 10% annualized total return, and its peers in the utilities and midstream sectors, with about 8% average annual total returns.
The energy infrastructure company could produce even higher total returns in the coming years. One factor fueling that view is its ability to capture a "once-in-a-generation" acquisition opportunity that it will close in phases this year. That deal will enhance its operations and growth profile, giving it more fuel to increase its 7.5%-yielding dividend.
Last September, Enbridge agreed to buy three natural gas utilities from Dominion for $14 billion. The transaction will create North America's largest natural gas utility platform with 7 million customers. It's paying a very reasonable price for the utilities at about 1.3 times their enterprise value -to-rate base and 16.5 times price-to-earnings .
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A Once-in-a-Generation Investment Opportunity: 1 High-Yield Dividend Stock to Buy Now and Hold Forever This April