ENB - This Unstoppable Dividend Stock's $14 Billion Acquisition Will Keep Its High-Yielding Payout Well Fueled
2023-09-07 08:33:00 ET
Enbridge (NYSE: ENB) has an unceasing record of paying dividends. The Canadian energy infrastructure behemoth has paid its shareholders dividends for over 68 years and has increased its payment in the last 28 straight years.
That dividend-growth streak isn't likely to stop anytime soon after Enbridge agreed to acquire three natural gas utilities from Dominion (NYSE: D) in a $14 billion all-cash deal. The transaction will supply it with even more steady and growing cash flow to support its dividend.
Enbridge is acquiring The East Ohio Gas Company, Questar Gas Company (and its related Wexpro companies), and Public Service Company of North Carolina in separate deals with Dominion. It's paying $9.4 billion in cash and assuming $4.6 billion in debt. The $14 billion deal values the utilities at 1.3x enterprise value -to-rate base and 16.5 times price-to-earnings .
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This Unstoppable Dividend Stock's $14 Billion Acquisition Will Keep Its High-Yielding Payout Well Fueled