Enbridge Inc. ENB is a leading midstream energy player that generates stable fee-based revenues. Due to the very nature of the business model, the company is not vulnerable to the volatility in oil and natural gas prices.
ENB is also well-positioned to generate incremental cash flows for shareholders. This fact is getting reflected in the midstream giant’s more than C$30 billion in secured capital projects. This includes projects related to liquid pipelines, gas transmissions, renewables and gas distribution & storage.
Once the projects come online, ENB will generate additional cash flows to support shareholders’ dividend payments. In fact, Enbridge has been rewarding shareholders with dividend hikes for 31 consecutive years.
The current dividend yield of ENB is 5.9%, which is higher than the average of 5.36% of the composite stocks belonging to the industry. In fact, ENB’s three-year median dividend yield of 6.66% is also higher than the 6.06% yield of the industry’s composite stocks, reflecting the handsome yield of the midstream energy major.
Dividend Yields of KMI & WMB are Lower Than ENB
Kinder Morgan Inc. KMI and Williams WMB are two other leading midstream players. Both KMI and WMB are well-known transporters of natural gas, thus well-positioned to capitalize on the growing clean energy demand. Despite that, the dividend yields of both KMI and WMB, of 4.35% and 3.36%, respectively, are lower than ENB’s yield.
ENB’s Price Performance, Valuation & Estimates
Shares of ENB have jumped 10.4% over the past year compared with the 7.8% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, ENB trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 14.76X. This is above the broader industry average of 13.63X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ENB’s 2025 earnings hasn’t seen any revisions over the past 30 days.
Image Source: Zacks Investment Research
Enbridge currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWilliams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
