Enbridge (ENB) Stock

ENB and BIP have impressive track records of generating attractive total returns and consistent inflation-beating dividend growth. They are both high-quality diversified infrastructure companies with defensive, inflation-resistant models. I compare them side-by-side and share my view on why only one is a buy right now.

Retirement income investing at its core is about not touching the principal and enjoying high and durable dividends. While it sounds simple, it actually requires a careful and diligent security selection process. The key is to find a balance between high yield (risk) and safety.

2 Durable Dividend Stocks That Have Delivered Decades of Stability and Growth

Enbridge outperformed the U.S. equity market with a 10% total return since August 21, driven by strong Q3 earnings and a 6.2% forward dividend yield. The company expects steady growth in distributable cash flow and adjusted EBITDA, despite high interest expenses, supported by North America's thriving energy industry. Enbridge's intrinsic value is estimated at $49 per share, offering a 14% upside potential, with a revised dividend discount model reflecting a less aggressive cost of equity.

CALGARY, AB , Nov. 18, 2024 /PRNewswire/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) announced today that none of its outstanding Cumulative Redeemable Preference Shares, Series 9 (Series 9 Shares) will be converted into Cumulative Redeemable Preference Shares, Series 10 (Series 10 Shares) on December 1, 2024. After taking into account all conversion notices received from holders of its outstanding Series 9 Shares by the November 18, 2024 deadline for the conversion of the Series 9 Shares into Series 10 Shares, less than the 1,000,000 Series 9 Shares required to give effect to conversions into Series 10 Shares were tendered for conversion.

Kinder Morgan has let investors down multiple times, but these two high-yield alternatives have been reliable through thick and thin.

High-yield stocks can fall due to non-dividend sustainability reasons, presenting opportunities for income investors to lock in attractive yields. In this article, I have identified two picks, which now yield about 9.5%. The beauty of both of these picks is that their fundamentals are sound and the dividends could be deemed sustainable.

These companies pay lucrative dividends.

Enbridge's 6.2% yield and 29-year dividend hike track record make it a reliable income source, with $27 billion in growth projects enhancing its future potential. A potential tailwind from $6.5 trillion in money market funds could drive investors to high-quality dividend stocks like Enbridge as interest rates decline. Enbridge's mission-critical North American energy infrastructure and strategic expansions in natural gas and offshore pipelines position it well for long-term growth.