We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ENB's 3-Decade of Consecutive Dividend Hike: Will the Trend Continue?
Read MoreHide Full Article
Key Takeaways
Enbridge has delivered three decades of consecutive dividend hikes to shareholders.
ENB's C$32B capital program spans pipelines, gas, renewables, and storage projects.
Shares of ENB rose 28% in a year, outpacing the industry's 24.3% improvement.
Enbridge Inc. (ENB - Free Report) is a leading midstream energy player and generates stable cash flows, which enable it to return handsome capital to shareholders. Over the past three decades, the company has rewarded shareholders with consecutive dividend hikes. Now, can the trend continue?
Let’s analyze the company’s basic business model. Being a midstream player, Enbridge generates stable cash flows, since most of the company’s assets are booked by shippers for the long term. Hence, the company is not significantly vulnerable to volume and price risks. This stability enabled Enbridge to continue to reward shareholders.
Importantly, ENB also has a secured capital program of C$32 billion, comprising projects related to liquid pipelines, gas transmission, renewables and gas distribution & storage. Thus, Enbridge is likely to generate incremental cash flows and hence will continue to reward shareholders in the coming days. Currently, ENB’s dividend yield is 5.6%.
EPD & KMI Also Generate Stable Cash Flows
Enterprise Products Partners LP (EPD - Free Report) and Kinder Morgan Inc. (KMI - Free Report) are also leading midstream energy stocks. Both EPD and KMI generate stable cash flows and hence can reward their shareholders handsomely.
Currently, Enterprise Products’ distribution yield is 6.86%, while KMI’s dividend yield is 4.3%.
ENB’s Price Performance, Valuation & Estimates
Shares of ENB have gained 28% over the past year compared with the 24.3% improvement of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, ENB trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 15.61X. This is above the broader industry average of 13.97X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ENB’s 2025 earnings has not seen any revisions over the past seven days.
Image: Bigstock
ENB's 3-Decade of Consecutive Dividend Hike: Will the Trend Continue?
Key Takeaways
Enbridge Inc. (ENB - Free Report) is a leading midstream energy player and generates stable cash flows, which enable it to return handsome capital to shareholders. Over the past three decades, the company has rewarded shareholders with consecutive dividend hikes. Now, can the trend continue?
Let’s analyze the company’s basic business model. Being a midstream player, Enbridge generates stable cash flows, since most of the company’s assets are booked by shippers for the long term. Hence, the company is not significantly vulnerable to volume and price risks. This stability enabled Enbridge to continue to reward shareholders.
Importantly, ENB also has a secured capital program of C$32 billion, comprising projects related to liquid pipelines, gas transmission, renewables and gas distribution & storage. Thus, Enbridge is likely to generate incremental cash flows and hence will continue to reward shareholders in the coming days. Currently, ENB’s dividend yield is 5.6%.
EPD & KMI Also Generate Stable Cash Flows
Enterprise Products Partners LP (EPD - Free Report) and Kinder Morgan Inc. (KMI - Free Report) are also leading midstream energy stocks. Both EPD and KMI generate stable cash flows and hence can reward their shareholders handsomely.
Currently, Enterprise Products’ distribution yield is 6.86%, while KMI’s dividend yield is 4.3%.
ENB’s Price Performance, Valuation & Estimates
Shares of ENB have gained 28% over the past year compared with the 24.3% improvement of the industry.
From a valuation standpoint, ENB trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 15.61X. This is above the broader industry average of 13.97X.
The Zacks Consensus Estimate for ENB’s 2025 earnings has not seen any revisions over the past seven days.
Enbridge stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.