Enbridge targets even more growth

Article Excerpt

Utility investors fear that rising interest rates will boost the appeal of bonds and so hurt the shares of high-yielding utility stocks like Enbridge. However, bond investors have to treat interest payments they receive as regular income. As a result, they pay higher taxes on their income compared to dividend payments from Canadian firms that qualify for a tax credit. Moreover, Enbridge gets most of its cash flow from regulated businesses, which lets it continually adapt for future growth. ENBRIDGE, $55.55, is a buy. The firm (Toronto symbol ENB; Shares outstanding: 2.0 billion; Market cap: $112.4 billion; TSINetwork Rating: Above Average; Dividend yield: 6.2%; 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 3.9 million consumers in Ontario. Overall revenue in the quarter ended September 30, 2022, rose by 0.9%, to $1157 billion from $11.47 billion. Excluding one-time items, earnings per-share rose 13.6%, to $0.67 from $0.59. That gain reflect’s the…