ENBA - Buy Enbridge: 8.5% Yield Solid Q3 Seasonally Prosperous Union Gas Utility

• Enbridge yields a safe and secure 8.5% in an era of near-zero interest rates and a 0.78% 10-year U.S. Treasury.
• Q3 results announced Friday morning were solid. The mainline is back at full-capacity; repair work on Texas Eastern's eastern leg has been completed and is back in service before winter.
• DCF/share of $1.03 easily covered the $0.81 dividend by 1.27x. The $4.65/share midpoint of full-year DCF guidance covers the current annual $3.24/share dividend by 1.44x.
• Heading into winter season, ENB's underappreciated Union Gas utility - the largest gas utility in North America by volume - will shine.
• ENB have highly visible cash flow and is a STRONG BUY with a $40 price target.

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