ENB - Enbridge: I'm Buying This 7.6%-Yielding Dividend Aristocrat Now

2024-03-10 07:30:00 ET

Summary

• In the next week, I will be adding shares of Enbridge to my dividend growth stock portfolio.
• Adjusting for share issuances related to recent acquisition activity, the midstream operator's adjusted EBITDA and DCF grew in Q4.
• Enbridge is committed to maintaining a leverage ratio within its targeted range of 4.5 to 5x debt to EBITDA.
• The company's shares could be trading 12% below fair value.
• Excluding potential valuation multiple expansion, Enbridge could be conservatively primed to narrowly outperform the S&P 500 index over the next 10 years.

Those who have followed me over the years know that I believe the next couple of decades will be solid for the midstream industry. My rationale for this belief hinges on oil and gas being life-sustaining commodities with no immediate substitutes.

As I noted in my article on ONEOK ( OKE ) earlier this week , demand for these commodities has nowhere to go but up in the next 20-plus years. This is because building out a growing global middle class will require access to affordable and reliable energy....

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