ENGGF - Enagas: I'm Buying The 8.5% Dividend Yield From This Infrastructure Play
- Enagas is the gas transmission company in Spain with a monopoly position.
- Regulatory pressures will reduce the profit and cash flows from the Spanish activities, so Enagas needs to invest elsewhere.
- Its recent two international additions are performing very well and are a massive contribution to the free cash flow.
- Despite paying a very generous dividend, Enagas should still be able to retain free cash flow to invest in other assets.
- I'm confident the 8.5% yield is safe.
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Enagas: I'm Buying The 8.5% Dividend Yield From This Infrastructure Play