Midstream Energy Firms Offer High Dividends Amid Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Stable Dividend Yields: Oneok, Enbridge, and Enterprise Products Partners offer dividend yields of 5.6%, 5.8%, and 6.8% respectively, demonstrating their ability to maintain reliable income streams despite sector volatility, thus attracting investors seeking stable returns.
- Market Performance Comparison: Compared to the S&P 500's meager 1.1% yield, the high yields from these three companies stand out, especially in the context of increasing economic uncertainty, making them appealing to income-focused investors.
- Structural Differences Impact Yields: Enterprise's master limited partnership (MLP) structure allows it to pass income to investors in a tax-advantaged manner, resulting in a higher yield, while Oneok operates as a corporation, offering lower yields but potentially better tax alignment for certain investors.
- Diversified Investment Options: Enbridge's business includes regulated natural gas utilities and renewable energy assets, and although its dividends are paid in Canadian dollars, its diversified model may attract investors looking to mitigate risk while seeking stable income.
ENB
$47.53+Infinity%1D
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 49.58 USD with a low forecast of 47.03 USD and a high forecast of 52.02 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.
8 Analyst Rating
3 Buy
5 Hold
0 Sell
Moderate Buy
Current: 47.450
Low
47.03
Averages
49.58
High
52.02
Current: 47.450
Low
47.03
Averages
49.58
High
52.02
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.
