Enbridge (NYSE: ENB) is one of the most reliable dividend stocks in the energy sector. The Canadian energy infrastructure juggernaut has increased its payout for 27 straight years. Its most recent increase of 3% pushed its dividend yield up to 6.4%.
That upward trajectory in the dividend is showing no signs of ending anytime soon. Enbridge has plenty of fuel to grow its cash flow over the coming years, which should support continued dividend increases. That makes it a great stock for investors seeking a sustainable passive income stream. Image source: Getty Images. Ending 2021 on a high note
Enbridge recently reported strong results to end 2021. The company generated $10 billion Canadian ($7.9 billion) in distributable cash flow. That was up 6% from 2020’s total and at the high-end of its guidance range.
The primary driver was the partial benefit from CA$10 billion ($7.9 billion) of expansion projects placed into service last year, led by the Line 3 Replacement Project. The company also received some benefit from its $3 billion acquisition of Moda Midstream, which included the Ingleside Energy Center. These new additions to its portfolio combined with the strong operating performance from its legacy assets to drive its 2021 results. That more than offset the CA$1.2 billion ($950 million) of assets it sold to help finance its expansion. Plenty of power to grow in 2022 and beyond
Enbridge’s 2021 investments are providing the fuel for accelerated growth in 2022. The company sees its distributable cash flow rising by 8% at the mid-point of its guidance range. That’s more than enough to cover the increased dividend. At the midpoint, Enbridge will have a dividend payout ratio of 64% in 2022. The company will benefit from a full year of its recently completed expansion projects — with Line 3 providing significant […]
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