2024-03-10 07:30:00 ET
Summary
- In the next week, I will be adding shares of Enbridge to my dividend growth stock portfolio.
- Adjusting for share issuances related to recent acquisition activity, the midstream operator's adjusted EBITDA and DCF grew in Q4.
- Enbridge is committed to maintaining a leverage ratio within its targeted range of 4.5 to 5x debt to EBITDA.
- The company's shares could be trading 12% below fair value.
- Excluding potential valuation multiple expansion, Enbridge could be conservatively primed to narrowly outperform the S&P 500 index over the next 10 years.
Those who have followed me over the years know that I believe the next couple of decades will be solid for the midstream industry. My rationale for this belief hinges on oil and gas being life-sustaining commodities with no immediate substitutes.
As I noted in my article on ONEOK ( OKE ) earlier this week , demand for these commodities has nowhere to go but up in the next 20-plus years. This is because building out a growing global middle class will require access to affordable and reliable energy....
Read the full article on Seeking Alpha
For further details see:
Enbridge: I'm Buying This 7.6%-Yielding Dividend Aristocrat Now