ENB keeps adding value

Article Excerpt

ENBRIDGE $50.23 is a buy. The firm (Toronto symbol ENB; Shares outstanding: 2.0 billion; Market cap: $100.4 billion; TSINetwork Rating: Above Average; Dividend yield: 6.9%; www.enbridge.com) will now raise your quarterly dividend by 3.0%, starting with the March 2022 payment. Investors will then receive $0.86 a share instead of $0.835. The new annual rate of $3.44 yields a very high 6.9%. Notably, Enbridge has now increased that annual payment each year for the past 27 years. The company will also repurchase up to $1.5 billion of its shares in 2022. That equals 2% of its $100.1 billion market cap. As well, Enbridge has approved $1.1 billion in new projects. As a result, it now expects to spend a total of $19 billion between 2021 and 2024. Most of these projects are secured by long-term contracts, which cuts their risk. The extra cash flow from those new assets should lift the company’s distributable cash flow, from the estimated $4.70 to $5.00 a share for 2021 to…