Enbridge's Sustainable Dividend Growth Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
0mins
Source: NASDAQ.COM
- Stable Dividend Growth: Enbridge has raised its dividend for 28 consecutive years, maintaining a payout ratio of 60% to 70%, which protects the dividend during economic downturns and boosts investor confidence.
- Strong Energy Demand: Global energy consumption is expected to grow by 8% annually through 2040, and Enbridge's operations in resource-rich Canadian oil sands will benefit from this trend, driving long-term growth for the company.
- Diversified Portfolio: In addition to traditional oil and gas pipelines, Enbridge is expanding its portfolio of renewable energy projects, enhancing its competitiveness in the future energy market and ensuring its critical role in the energy transition.
- Robust Business Model: Enbridge's pipeline and utility businesses are highly regulated and profit based on consumption volumes, ensuring stability amid economic uncertainties and providing shareholders with a consistent stream of passive income.
Analyst Views on ENB
Wall Street analysts forecast ENB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ENB is 49.75 USD with a low forecast of 44.63 USD and a high forecast of 51.83 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
5 Buy
6 Hold
0 Sell
Moderate Buy
Current: 48.020
Low
44.63
Averages
49.75
High
51.83
Current: 48.020
Low
44.63
Averages
49.75
High
51.83
About ENB
Enbridge Inc. is an energy transportation and distribution company. The Company's segments include Liquids Pipelines, Gas Transmission, Gas Distribution and Storage, and Renewable Power Generation. Liquids Pipelines consists of pipelines and terminals in Canada and United States that transport and export various grades of crude oil and other liquid hydrocarbons, including the Mainline System, Regional Oil Sands System, Gulf Coast and Mid-Continent, and Other. Gas Transmission consists of its investments in natural gas pipelines and gathering and processing facilities in Canada and United States, including United States Gas Transmission, Canadian Gas Transmission, United States Midstream, and Other. Gas Distribution and Storage consists of its rate-regulated natural gas utility operations in Canada and United States. Renewable Power Generation consists primarily of investments in wind and solar assets, as well as equity interests in geothermal power and power transmission assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
