Enbridge's Dividend Payment: A 30-Year Promise That Keeps Paying
Enbridge Inc. ENB, a leading midstream energy player in North America, has a strong track record of returning capital to shareholders through dividend payments. For 30 consecutive years, the midstream energy giant has increased its dividends to reward shareholders, earning a prestigious position among the few dividend aristocrats in the energy space.
Unlike most energy companies, which are susceptible to oil and gas price volatility, Enbridge is consistently rewarding shareholders. This reflects a solid business model with predictable cash flows. This steady income allows ENB, which operates an extensive crude oil and liquids transportation network spanning 18,085 miles, to return a portion of its earnings to shareholders through regular dividend payments, even during volatile market conditions. Underscoring the strength of ENB's midstream operations, its pipelines transport 20% of the total natural gas consumed in the United States.
Looking ahead, Enbridge believes it could achieve approximately 5% annual business growth through the end of 2030. This solidifies ENB's strong business outlook, thereby securing incremental cash flows. Thus, long-term shareholders can expect steady and handsome dividends from the midstream major.
Are KMI & WMB Also Rewarding Investors Handsomely?
Kinder Morgan KMI and Williams WMB are also leading midstream energy players, thereby are less vulnerable to oil and gas price volatility. Despite their stable business models, both KMI and WMB currently reward investors with lower dividend yields than the industry's composite stocks.
Kinder Morgan's current dividend yield is 4.24%, lower than the industry's 5.24% yield. Williams' current dividend yield is 3.38%.
ENB's Price Performance, Valuation & Estimates
Shares of Enbridge have gained 38% over the past year, outpacing the 35.1% rally of the composite stocks belonging to the industry.
From a valuation standpoint, ENB trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 15.04X. This is above the broader industry average of 13.89X.
The Zacks Consensus Estimate for ENB's 2025 earnings hasn't been revised over the past seven days.
ENB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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