ENBRIDGE INC. $46.75 - Toronto symbol ENB

ENBRIDGE INC. $46.75 (Toronto symbol ENB; Shares outstanding: 867.6 million; Market cap: $40.8 billion; TSINetwork Rating: Above Average; Divd. yield: 4.5%; www.enbridge.com) has agreed to sell 56.6 million common shares at $40.70 a share to several major brokerage firms to raise $2.3 billion. Enbridge will put that cash toward $18.2 billion in spending on new pipelines, wind farms and other projects between 2016 and 2019. The company has already secured shipping commitments from oil producers and other clients. That should cut the risk for these new projects. The extra cash flow from the new operations will allow Enbridge to increase its dividend by 10% to 12% a year through 2019; the current annual rate of $2.12 a share yields 4.5%. However, the stock is somewhat expensive at 21.0 times its projected 2016 earnings of $2.23 a share. Enbridge is still a hold.

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