#6 - Enbridge (NYSE:ENB)
Enbridge Inc. (NYSE: ENB) is a Canadian-based energy transportation and distribution company. The company’s pipeline consists of oil and natural gas pipelines, natural gas utilities, and renewable power investments. The compelling investment thesis for Enbridge is that it’s positioned for where the world’s energy needs are today and where it’s headed.
Higher interest rates have been a headwind for Enbridge, which relies on debt financing to maintain and expand its infrastructure. In fact, the company recently purchased three natural gas utilities in North Carolina. In addition to expanding the company’s geographic footprint, these utilities will lower the percentage of the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) from 57% to 50%.
Lower interest rates will lower the cost of that debt and make Enbridge stock attractive to investors. Not that it’s been unattractive. ENB stock is up 13.6% in 2024. However, much of that gain is due to the company’s dividend, which has an attractive 6.43% yield.
About Enbridge
Enbridge Inc, together with its subsidiaries, operates as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The Liquids Pipelines segment operates pipelines and related terminals to transport various grades of crude oil and other liquid hydrocarbons in Canada and the United States.
Read More - Current Price
- $41.14
- Consensus Rating
- Reduce
- Ratings Breakdown
- 1 Buy Ratings, 3 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $51.50 (25.2% Upside)
