CA - Enbridge: One Of The Biggest Indirect Winners From AI Yielding 7.66%
2024-06-25 09:30:00 ET
Summary
- Enbridge has struggled to gain momentum in the market, but its growing dividend has been a saving grace for shareholders.
- The company's infrastructure is critical to big-tech companies and is positioned to benefit from the growing demand for sustainable energy.
- Enbridge is undervalued and offers a strong income opportunity for investors, with plans for future growth in earnings, dividends, and EBITDA.
On the surface, Enbridge Inc. ( ENB ) may not be exciting to the investment community, but its operational infrastructure is critical to all of the big-tech companies grabbing the spotlight. It's been difficult for shareholders of ENB because every time shares start to gain momentum, the rally loses steam. ENB has been in the penalty box for more than a decade, and the growing dividend has been the only winning aspect of the investment. Shareholders have seen a 26.88% share price erosion since June of 2014, which hasn't been easy during a period when the S&P 500 is up 178.40%. The growing dividend has been the only saving grace as it has paid investors $21.55 over the past decade, which is 169.15% of the share value that they have lost. I think the energy sector, from upstream production to energy infrastructure companies, is undervalued, and we will see a sector rotation as valuations become further stretched in big tech heading into a rate-cutting environment. At some point, value and income-producing investments will become popular again, and ENB is a top candidate for grabbing capital to come back into the market. The genie is out of the bottle when it comes to AI, and the demand for energy is only going to get bigger. ENB is a 2nd and 3rd derivative play on AI, as it's the largest natural gas utility company and one of the largest pipeline companies in North America. ENB has created an infrastructure company where its assets are irreplaceable. It expects to grow its EPS and reward shareholders with dividend growth for years to come....
Enbridge: One Of The Biggest Indirect Winners From AI Yielding 7.66%