Enbridge has plenty of room to grow

Article Excerpt

Enbridge has faced negative media coverage after U.S. regulators criticized it for its response to a 2010 pipeline spill in Michigan. As well, environmentalists and First Nations have objected to its proposed Northern Gateway oil pipeline from Edmonton to Kitimat, B.C. However, its financial strength will let it keep expanding through a number of projects—and raising its dividend. ENBRIDGE INC. $40.50 (Toronto symbol ENB; Shares outstanding: 794.9 million; Market cap: $33.3 billion; TSINetwork Rating: Above Average; Dividend yield: 2.8%; www.enbridge.com) gets 80% of its revenue by operating pipelines that pump crude oil and natural gas from western Canada to eastern Canada and the U.S. The remaining 20% mainly comes from distributing gas to consumers in Ontario, Quebec, New Brunswick and New York State. Enbridge has spent over $12 billion on new growth projects in the past three years. This includes new pipelines to handle rising oil sands and shale gas production. Meanwhile, the company expects to complete another $13 billion in projects…