UPS, Enbridge, and General Mills Present High-Yield Investment Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- UPS Cash Flow Stability: Despite a more than 17% decline in UPS's stock price over the past year, its free cash flow has exceeded $1.4 billion in three of the last quarters, ensuring the company can continue to pay its quarterly dividends, demonstrating financial resilience amid headwinds.
- Enbridge Dividend Growth: Enbridge announced a 3% increase in its quarterly dividend, marking the 31st consecutive year of dividend hikes; while its 5.8% yield is slightly below UPS's, the company benefits from stable long-term contracts that enhance its earnings predictability and cash flow safety.
- General Mills Market Performance: Although General Mills' stock has fallen 25% in the past year, its organic net sales only decreased by 1% in the latest quarter, indicating the company's ability to remain profitable amid health food trends, with a 52% payout ratio suggesting high dividend safety.
- Investment Return Potential: Investing $6,000 in each stock could yield approximately $370 from UPS, $350 from Enbridge, and $330 from General Mills, totaling an expected annual income of about $1,050, highlighting the attractiveness of high-yield investments.
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: 47.590
Low
44.63
Averages
49.75
High
51.83
Current: 47.590
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.
