ENB - Enbridge Preferred Shares: Prime Investment Opportunity

2024-04-04 10:04:41 ET

Summary

• The current interest rate environment presents a unique opportunity for investing in selected preferred and common shares.
• There could be significant upside over the next six months for Canadian dollars denominated Enbridge Series R and US dollars denominated Series 5.
• DDM analysis shows that Enbridge common shares have a 12-month upside of 27.5% in addition to the current dividend yield of 7.45%.
• A company analysis and investigation of major risks suggest that Enbridge's preferred and common shares are relatively low-risk investments.

Enbridge is a solid infrastructure play

I expect a significant upside over the next six months for Canadian-dollars-denominated Enbridge Series R ( ENB.PR.T:CA ) and US-dollars-denominated Series 5 ( ENB.PF.V:CA ) (EBGEF).

One of the largest global infrastructure companies, Enbridge's business consists of four major segments: Liquids Pipelines, Gas Transmission & Midstream, Gas Distribution and Storage, and Renewable Power Generation. Diversification between multiple segments results in a stable business model and lower operational and geographic risks....

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