Pipeline company Enbridge (TSX:ENB)(NYSE:ENB) is one of the best businesses in the oil and gas industry in Canada to invest in. Its financials are generally stable and Enbridge is normally a safe bet to generate profits and strong free cash flow.
On Nov. 30, the company released its guidance for 2023 and also announced that it would be raising its dividend, again. Enbridge will be increasing its dividend payment for the 28th year in a row and the latest hike is a 3.2% bump up to the payout. Investors will now be collecting $3.55 per share on an annual basis, up from the current dividend that pays $3.44 over the course of a full year. With the stock trading around $55, that means Enbridge's yield is now at around 6.5%. That's far higher than many other stocks on the TSX. On a $25,000 investment, that would bring in approximately $1,600 in dividends.
The business expects that next year, its distributable cash flow per share will be within a range of $5.25 and $5.65. That's slightly higher than its guidance for this year, where it projects DCF to be between $5.20 and $5.50.
Year to date, Enbridge has been one of the better-performing stocks on the markets, rising 11% in value. There's been plenty of bullishness in the oil and gas industry this year amid rising oil prices. And with Enbridge being one of the safer stocks to own in the industry, it's not a surprise that it has made for a solid buy.
