Enbridge is a Canadian company engaged in the construction and maintenance of oil and gas pipelines in the United States and Canada. The company's shares are traded on the Toronto Stock Exchange (TSX) and the NYSE. Enbridge demonstrates strong financial performance and consistently pays dividends. The fair value of the company's shares is CAD 55, with a growth potential of 8.9%. The dividend yield is 7.2%.
Investment thesis
🔼 Strong financial performance. Enbridge's Q1 2024 financial results pleased the investors. Adjusted EBITDA increased by 11% to CAD 4.954 billion. Adjusted earnings per share (EPS) rose by 8% to CAD 0.92. Both metrics exceeded market expectations. Additionally, the company showed a 9% increase in distributable cash flow to CAD 3.463 billion. This figure is particularly relevant for dividend stocks as it indicates the company's ability to make payouts.
🔼 Dividends. On its conference call Enbridge's management emphasized its commitment to a long-term strategy focused on stable shareholder payouts. The company is part of the "Dividend Aristocrats," having regularly increased dividends for 29 consecutive years. The expected dividend for 2024 is CAD 3.66, representing a dividend yield of 7.2%. This level is highly attractive for long-term investors.
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