Enbridge purchase adds risk

Article Excerpt

ENBRIDGE INC. $50.67 (Toronto symbol ENB; Shares outstanding: 1.6 billion; Market cap: $83.8 billion; TSINetwork Rating: Above Average; Dividend yield: 5.3%; www.enbridge. com) operates pipelines that pump oil and natural gas from Western Canada to eastern Canada and the U.S. It also distributes gas to consumers in Ontario, Quebec, New Brunswick and New York State. Starting with the March 2018 payment, Enbridge investors will receive a quarterly dividend of $0.671 a share, up 10.0% from $0.61. The shares now yield a high 5.3%. The company continues to hold a strong competitive position due to its wide geographic diversification and size. It also continues to provide a sound combination of long-term growth prospects, plus income. However, big acquisitions like its $37 billion purchase of Spectra Energy last year add risk. Those deals can have hidden problems that delay the expected gains. Enbridge is still a hold. hold…