Enbridge offers yield plus growth

Article Excerpt

Through Enbridge shares, investors win both a high yield and strong growth prospects. The firm’s transformation over the past few years—from eliminating its complex holding-company structure to its 2017 purchase of U.S. pipeline operator Spectra Energy for $37 billion—has positioned it to weather pandemic economic challenges and to prosper going forward. What’s more, long-term contracts protect investor value. ENBRIDGE $49.83 is a #1 Buy for 2021. The firm (Toronto symbol ENB; Shares outstanding: 2.0 billion; Market cap: $100.6 billion; TSINetwork Rating: Above Average; Dividend yield: 6.7%; www.enbridge.com) operates pipelines that pump Western Canadian oil and gas to eastern Canada and the U.S. Investors also tap the company’s gas distribution business to Ontario and Quebec consumers. Improving demand for oil and gas as the economy recovers from the pandemic pushed up Enbridge’s revenue in the quarter ended June 30, 2021, by 37.6%, to $10.95 billion from $7.96 billion. Excluding one-time items, earnings per-share rose 19.6%, to $0.67 from $0.56. The company continues to move…