ENB Stock Recent News

The interest rates have started to gradually come down, where the consequences of it could already be seen across the dividend landscape. On the one hand, this implies an immediate portfolio value increase, which is obviously not a negative. On the other hand, the reducing interest rates push down the discount rates, which, in turn, inflate asset prices. This has a direct negative and mathematical effect on the dividend yields.

My strategy aims for a $50,000 annual income portfolio by age 40, focusing on investments with a 7% yield and 2% annual dividend growth. I prioritize straightforward, defensive businesses with fortress balance sheets, ensuring high dividend coverage and attractive initial yields. This simple, value-oriented approach allows for a buy-and-hold strategy, minimizing the need to worry about short-term fluctuations.

In this article I discuss methods for finding undervalued stocks. Then we discuss Enbridge preferred stock symbol EBBNF (ENB.PF.U on the Toronto Exchange). And then I document why we believe this Enbridge preferred stock is the best U.S. dollar denominated investment grade preferred stock in the market right now.

The Federal Reserve has finally started reducing interest rates. That should lower Enbridge's borrowing costs, enhancing its cash flow and growth prospects.

Recently, Zacks.com users have been paying close attention to Enbridge (ENB). This makes it worthwhile to examine what the stock has in store.

Enbridge has paid dividends for nearly seven decades. Clearway Energy expects to grow its high-yielding payout near the top end of its target range through 2026.

As interest rates decline, investors will likely shift from cash to high-yield, low-risk investments, benefiting Enbridge's preferred and common shares. Three recently reset preferred shares of Enbridge offer dividend yield above 7.5% fixed for the long term. Four preferreds will be reset within one year, resulting in up to a 90% increase in dividends.

Enbridge's valuation has surged to over $40/share, making it less attractive compared to our initial buy at $31.7/share. Despite solid operational performance and growth prospects, the current price limits upside potential, prompting a "Hold" rating. Enbridge remains a safe income investment in the NA energy sector, but we recommend buying only below $36/share for optimal returns.

Enbridge's new Series 4 preferred shares offer a quarterly floating dividend based on the three-month Canada Government bond rate plus 238 bps. The initial dividend yield is 8.65%, but future dividends may decline as short-term interest rates decrease. Series 4 shares are speculative, relying on short-term interest rates, while Series 3 offers a fixed yield for five years.

Although Enterprise Product Partners' hefty 7.2% yield is the main attraction, don't overlook the 26-year streak of annual distribution hikes. Enbridge has paid a dependable dividend for decades.