Amid high inflation and uncertainty, it’s prudent to earn a steady income through reliable dividend-paying stocks offering fat yields. Thus, investors seeking high yields could consider Enbridge (NYSE:ENB)(TSE:ENB) stock.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Enbridge has a solid dividend payment history and offers a high yield of over 7%. Let’s dig deeper.
Enbridge’s Dividend Payment History
Enbridge operates an energy infrastructure business that has proven resilient to economic cycles. Thanks to its solid business, Enbridge has consistently enhanced its shareholders’ returns and has paid dividends for about 67 years.
What stands out is that ENB has consistently hiked its dividend at a CAGR of 10% since 1995.
Its dividend payouts are backed by its growing distributable cash flows, which benefit from its high asset utilization rate, diversified cash flows, and inflation-protected EBITDA. It is worth highlighting that ENB’s adjusted EBITDA has grown at a CAGR of 14% in the last 14 years, which cushions its distributable cash flows and supports its higher dividend payments.
Here’s What’s on the Horizon for ENB Shareholders
The ongoing momentum in its business and steady energy demand indicate that Enbridge could continue to return substantial cash to its investors. Also, the benefits from the new assets placed into service, the expansion of its liquid pipelines, investments in renewable power, and strategic acquisitions augur well for its future payouts.
Also, Enbridge targets a payout ratio of 60-70% of its distributable cash flows, which is sustainable in the coming years.
Bottom Line: Is Enbridge a Good Long-Term Investment?
Enbridge’s resilient business and solid dividend payments make it an attractive long-term stock. ENB stock commands a Moderate Buy consensus rating on TipRanks based on seven Buy and three Hold recommendations.
Further, the average Enbridge price target of $43.22 indicates 20% upside potential over the next 12 months.
Enbridge stock also has a positive signal from hedge fund managers, who bought 50.9K shares last quarter. Moreover, our data-driven stock score shows ENB stock has an Outperform Smart Score of nine out of 10.
Besides ENB, investors seeking reliable dividend income could use TipRanks’ dividend calendar to find stocks that will soon announce their payouts.
