Enbridge: Diverging Interest Rate Paths Have Me Rethinking Common Vs. Preferred

2025-08-02 09:11:53 ET

Another Boring Quarter (Not A Bad Thing)

Following Enbridge ( ENB ) ( ENB:CA ) is the opposite of watching an episode of Big Brother . With Enbridge, you can definitely expect the expected. That makes it a favorite of income investors who value the slow, steady dividend growth of the common shares or the slightly higher-yielding but well-covered preferreds. The predictability arises from Enbridge's business model. In the liquids and gas pipelines segments, Enbridge signs up investment-grade customers to take or pay contracts based on volumes shipped, not commodity prices. They don't start an expansion or new line until all the volume is committed, ensuring the lines will run close to full. In the gas transmission segment, which recently expanded into the US last year, Enbridge operates regulated utilities with government-approved rates based on a guaranteed return on equity....

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