A Stock to Buy and Hold for the Next Decade and Beyond

finguy101

Junior member
10 3
Enbridge is one of the largest midstream companies in North America.

They operate a vast pipeline network that transports oil and gas from where it’s gathered to where it needs to be to keep Canada and the United states powered and warm.

In recent years, the company made a series of acquisitions and consolidations to streamline their business model. Specifically, they acquired Spectra Energy (which gave them their big boost in natural gas exposure), and then bought out several master limited partnerships that they had large stakes in, bringing all of this into the parent company.

Enbridge currently has an 8% dividend yield and 25 years of consecutive annual dividend growth.

Enbridge has one of the highest credit ratings in the midstream industry, but took on a lot of debt when they acquired Spectra Energy a couple years ago. Enbridge has since reduced its debt/EBITDA ratio from 7.0x down to about 4.5x in a short period of time by selling non-core assets, which puts them back near the lower range of oil/gas infrastructure companies.

Going forward, the company plans to maintain its debt/EBITDA ratio in the range of 4.5x-5.0x and keep its strong credit rating. Now that deleveraging is done, they have more flexibility for growth and returning capital to shareholders.

It's definitely a great buy for the long-run. Track the company's performance here:
 

CavaliereVerde

Experienced member
1,184 1,546
Investing stuff related to fossil fuels doesn't seem a good idea.
Even Larry Fink of Blackrock is reducing his investments in oil companies.
 
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