ENB - Enbridge: The Bullish Case Remains Intact

2024-05-26 23:52:38 ET

Summary

• Enbridge is a midstream/pipeline company with steady cash flows and attractive distributions.
• Despite a decline in revenue, Enbridge's profitability metrics remain strong, with rising cash flows.
• The company is focused on growth through acquisitions and capital expenditures, while also returning capital to shareholders.

One of my favorite segments of the market to invest in is the midstream/pipeline space. Companies in this market niche have certain advantages that most other firms don't. They tend to generate significant and steadily growing cash flows. They are highly predictable and, although I don't care much about yield, they do pay out hefty distributions. Because of their business models, they are also fairly low risk. Add on top of this the fact that many of them trade on the cheap, and there is not much to dislike....

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