With a dividend yield around 7%, Enbridge Inc. (TSX:ENB)(NYSE:ENB) has been one of my top picks for income-oriented investors for some time. I’m a fan of the company for factors beyond its healthy dividend yield.
Enbridge has continued to grow over time, through various infrastructure improvements and pipeline extension projects. The company is among an elite few energy infrastructure companies with pipelines underway that are expected to meet regulatory hurdles and be approved shortly.
With any new pipeline project being met with increasing scrutiny, investing in an energy infrastructure company like Enbridge with room to grow over the long-term allows investors to benefit from cash flow growth over time.
Enbridge’s management team has been extremely adept at increasing the company’s dividend over time. Investors can expect increases to continue over the long term, in the mid to high single digit range, increasing the value proposition for this dividend investment today.
Headwinds related to low oil prices and counterparty risk appear to have somewhat abated with WTI oil now trading around U.S.$40/barrel, at the time of writing. This furthers the bullish argument for owning Enbridge. As a pipeline operator, Enbridge is the safest way to play the energy space. The company does not have direct exposure to commodity prices and is therefore extremely stable from a cash flow perspective.
Invest wisely, my friends.
