Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Stock Market»This 6%-Yielding Dividend Stock Hits Its Target for the 19th Year in a Row
    Stock Market

    This 6%-Yielding Dividend Stock Hits Its Target for the 19th Year in a Row

    February 16, 20254 Mins Read


    Enbridge (ENB -3.83%) operates a very predictable business. Its pipeline and utility assets generate very stable cash flow backed by long-term contracts and regulated cost-of-service frameworks.

    Its business is so stable that the Canadian energy infrastructure company has now achieved its annual financial guidance for 19 years in a row. That’s impressive considering the conditions it faced during that period, which included a financial crisis, a commodity price collapse, forest fires in the heartland of Canada’s oil industry, a global pandemic, and rising inflation.

    The company delivered strong results last year, taking advantage of a rare opportunity to acquire several high-quality U.S. natural gas utilities. It’s in an excellent position to continue growing its earnings and cash flow. Because of that, investors can bank on Enbridge’s 6%-yielding dividend.

    One for the history books

    In the company’s fourth-quarter earnings press release, CEO Greg Ebel said 2024 was “a historic year for Enbridge.”

    The company grew its EBITDA (earnings before interest, taxes, depreciation, and amortization) by 13% to $13.3 billion, while its distributable cash flow (DCF) rose 6% to $8.5 billion. The biggest driver was completing what Ebel has called a “once in a generation” acquisition of three leading U.S. gas distribution companies for CA$19 billion ($13.4 billion). He added, “This transaction positions Enbridge as the owner of North America’s largest natural gas utility franchise and complements our existing low-risk business model, and each of the utilities is well-positioned to serve growing natural gas demand in North America.”

    Enbridge also benefited from placing $3.5 billion of organic expansion projects into service last year across its four core franchises (liquids pipelines, gas transmission, gas distribution, and renewable power). The company also closed three smaller tuck-in acquisitions last year to establish a Permian natural gas footprint and enhance the position of the Enbridge Ingleside Energy Center, a leading crude oil export terminal.

    Plenty of room for expansion

    The company’s heavy investments last year give it lots of momentum heading into 2025. It expects to grow its adjusted EBITDA to a range of $13.7 billion to $14.2 billion, an 8% to 11% rise from last year. And it anticipates delivering up to 5.4% more per share in DCF, with that number slowed somewhat due to some tax legislation headwinds and the share dilution from the utility acquisitions.

    That upward trend should continue in 2026 and beyond. Enbridge approved $5.7 billion of new organic expansion projects last year, adding to its long-term growth drivers. Notable new projects include:

    • Tennessee Ridgeline: The $1.1 billion expansion of its Tennessee Natural Gas system will help supply a new natural gas power plant when it enters service next year.
    • Gulf of Mexico (also known in the U.S. as the Gulf of America): Projects to support BP’s Kaskida and the Sparta development by Shell and Equinor, which it expects to complete in 2029.
    • North Carolina gas distribution: Enbridge’s gas utility acquisition came with built-in growth drivers, including two major projects in North Carolina. It’s building the Moriah Energy Center, a liquefied natural gas facility to enhance reliability, and the T15 Reliability Project to connect its system to Duke Energy’s 1.4 GW Roxboro gas-fired power plant. These projects have in-service dates in 2027 and 2028.
    • Solar: Enbridge is building three large-scale U.S. solar energy projects backed by long-term power purchase agreements with Amazon, AT&T, and Toyota that should enter service by next year.

    These additions enhance and extend its backlog and growth outlook. Enbridge entered 2025 with $18.4 billion of projects under construction that should start commercial service through the end of this decade. They should help support 3% to 5% annual DCF per share growth over the next several years. That should give Enbridge the fuel to continue increasing its high-yielding dividend — which it’s raised for 30 consecutive years — at a similar rate.

    A model of consistency

    Enbridge’s low-risk pipeline and utility assets generate very predictable earnings, and that provides the stable cash flow to pay an attractive dividend and continue investing in expanding its energy infrastructure. The company has a lot more stable growth ahead. Because of that, it’s a great stock to buy and hold for a steadily rising income stream.

    John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Matt DiLallo has positions in Amazon and Enbridge. The Motley Fool has positions in and recommends Amazon and Enbridge. The Motley Fool recommends BP, Duke Energy, and Equinor Asa. The Motley Fool has a disclosure policy.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    3 Highly-Rated Dividend Stocks You’ve Probably Never Heard Of (But Should)

    Stock Market

    United Utilities Group PLC : RBC Capital Markets de acheteur à neutre sur le titre

    Stock Market

    une boutique Voi va ouvrir au Havre

    Stock Market

    10 Best Dividend Stocks for a Bear Market

    Stock Market

    RBC dégrade United Utilities à “performance sectorielle” en raison d’un potentiel limité

    Stock Market

    3 Dividend Stocks To Consider For Your Portfolio

    Stock Market
    Leave A Reply Cancel Reply

    Top Picks
    Fintech

    macompta.fr : la fintech de Valence entre au classement des Champions de la Croissance 2025

    Stock Market

    Canadian Utilities Limited Expected to Post Q2 2024 Earnings of $0.42 Per Share (TSE:CU)

    Cryptocurrency

    Binance Debuts Crypto Service for Wealth Managers

    Editors Picks

    This rare earth metal shows us the future of our planet’s resources

    August 21, 2024

    Fintech Digital Marketing Agency Welcomes Lou Friedmann as Managing Director

    October 17, 2024

    New York Fintech Octane Raises $50 Million in Series E Funding Round

    August 8, 2024

    un système solaire avec batteries pour alimenter la mine de Kamoa-Kakula

    April 4, 2025
    What's Hot

    Jewelry store owner says robbers stole nearly $2 million in gold

    October 26, 2024

    InFocus: Updates from the Government Property Agency (October 24)

    October 14, 2024

    Property For Industry prévoit des dividendes en espèces de 8,50 NZ CPS pour l’exercice 2025

    April 27, 2025
    Our Picks

    Adam Silver avoue : « Je n’ai pas pu annuler le trade de Doncic aux Lakers à cause de ça »

    February 13, 2025

    SaaS major Zoho forays into fintech space, launches Zoho Payments | Company News

    August 29, 2024

    Stock Market Highlights, Aug 16: Sensex climbs 1,331 pts; Nifty near 24,550; IT, Banks shine | News on Markets

    August 16, 2024
    Weekly Top

    Primaris Real Estate Investment Trust : National Bank conserve son opinion neutre

    June 20, 2025

    Alternative investments: Gardening offers more than just savings – Mary Holm

    June 20, 2025

    Kevin Durant devient actionnaire minoritaire du Paris Saint-Germain

    June 20, 2025
    Editor's Pick

    Couvy Rock Festival, du punk et du métal!

    May 30, 2025

    le début d’un bull run ?

    June 10, 2025

    Watch These Bitcoin Price Levels as Cryptocurrency Drops Below $80K Amid Tariff Worries

    April 6, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.