ENB - Is High-Yield Enbridge Stock a Buy?
2024-06-02 05:04:00 ET
The big draw for investors when it comes to Enbridge (NYSE: ENB) is likely to be the stock's 7.4% dividend yield. Add in a 29-year streak of annual payout increases and an investment grade balance sheet, and there's even more to appreciate. But don't jump in just yet, because there are some dividend investors that will probably be better off elsewhere. Here's what you need to know.
The core of Enbridge's business is one of North America's largest energy pipeline networks. Handling both oil and natural gas, the infrastructure the company owns would be difficult if not impossible to replace. But, more to the point, Enbridge charges fees for the use of the pipelines, storage, and transportation assets it owns. That generates reliable cash flows to support the company's big dividend payment.
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Is High-Yield Enbridge Stock a Buy?