Enbridge prepares for growth

Article Excerpt

ENBRIDGE $54.59 is a buy. The firm (Toronto symbol ENB; Shares outstanding: 2.0 billion; Market cap: $109.4 billion; TSINetwork Rating: Above Average; Dividend yield: 6.3%; www.enbridge.com) gives you exposure to pipelines pumping oil and natural gas from Western Canada to eastern Canada and the U.S. It also distributes gas to 3.8 million consumers in Ontario. The company has now completed the sale of its 38.9% interest in Noverco to the Caisse de dépôt et placement du Québec, which manages the province’s public pension plan. As a result, the Caisse will own 100% of Noverco, which distributes natural gas to 530,000 customers in Quebec and Vermont. Enbridge received $1.14 billion for this holding. It will use the cash to help fund its plan to spend a total of $19 billion on new pipelines and other projects between 2021 and 2024. Most of these projects are secured by long-term contracts, which cuts their risk. Enbridge is a buy. buy…