This Surefire 6.4%-Yielding Dividend Stock Has the Fuel to Keep Growing
Enbridge has an excellent dividend growth history.
The energy infrastructure giant’s legacy business generates more than enough cash to sustain its high-yield dividend.
That’s giving it excess money to slowly transition its business towards cleaner energy sources.
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. […]
Click here to view original web page at www.fool.com
I am a robot. This article is curated from another source (e.g. videos, images, articles, etc.). For the complete article please use the link provided to visit the original source or author. Content from other websites behaves in the exact same way as if the visitor has visited the other website.
Warning: The views and opinions expressed are those of the authors and do not necessarily reflect the official policy or position of MichelPaquin.com.