TSE:ENB

Enbridge (ENB.TO)

76.70
-0.02 (0.03%)
as of Jul 3, 2026, 8:00:00 pm Market Open.
2690 watching
0
Investor Insights
star iconJul 3, 2026, 12:00 am

This summary was created by AI, based on 38 opinions in the last 12 months.

Enbridge (ENB) continues to be viewed positively by numerous experts due to its strong position as a leading pipeline company in North America, which benefits from the flowing demand for fossil fuels. The company pays a competitive dividend, currently over 5%, which has historically been sustainable and is expected to grow steadily. Analysts highlight the company's robust management team and diversified operations in both conventional oil and renewable energy sectors as essential strengths. However, there are concerns regarding its higher valuation metrics relative to earnings, prompting some experts to advise caution in terms of timing purchases, especially after the stock has seen recent gains. Nevertheless, Enbridge's consistent cash flow and long-term growth prospects make it an attractive option for investors seeking income generation in the energy infrastructure space.

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Consensus
Positive
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Valuation
Fair Value
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Similar
TRP
PAST TOP PICK
(A Top Pick Jul 12/19, Up 0%) Still owns it. Most growth among the pipelines. Good recent quarter, and reiterated dividend and earnings growth. A good entry point today, down $1.50 from $45.
DON'T BUY
Trying to pick up positive price momentum. More volatile recently. A bit rich. Lots of debt on the balance sheet. Good yield, but payout ratio is bumping up where he'd get concerned. A small short for him. Might lag some of the other companies with a better ROE.
BUY
Long term It pays a 7% dividend and it's good long term. They addressed their balance sheet issues and simplified their corporate structure. ENB has a large U.S. and natural gas presence, so it's diversified to oil. It's become difficult to build new pipeline, so their existing pipelines are valuable, moving a lot of crude oil across North America.
TOP PICK
A dividend growth story, not so much acquisition. Their main pipeline moves two-thirds of western oil out of the west, and their line 3 project in Minnesota should be the greenlight after many deadlines. They also move midstream gas, moving 25% of North American natural gas. They own a small, but fast-growing renewable energy business. Enbridge home-heating gas is Stable and profitable. The stock is depressed along with oil prices, but it will come back. Pays a 7.5% dividend, but it's safe based on their balance sheet and ENB hasn't cut its divvy in the past. (Analysts’ price target is $52.34)
DON'T BUY
A company that he is not enthusiastic about. They have a lot of debt, poor performance in assets, and cashflow hasn't changed in the past few years. There is good dividend growth. It would probably do better than cash or bonds. He would look elsewhere for better balance sheets, cashflow and less debt.
COMMENT
It yields around 7%, though there's negativity around their projects. Just seeing an advance on one of their pipelines will change sentiment. He believes their projects will go ahead and that will raise the stock price. Two or three green lights will push the stock to $50.
BUY
Safe dividend? Quite safe. Cash flow is growing and the balance sheet is in much better shape than in past years. Their existing assets are fine. Valuation has plunged from around 25x to around 15x. ENB is not tied to commodity prices, though commodity volume. When you can't get yield from bonds or some stocks, ENB's dividend pays.
HOLD
Likes it. Fantastic dividend of about 8%, which will move around with oil markets. Doesn't think the dividend is in trouble.
COMMENT

Sell Banks for Pipelines? He likes this strategy. Balance the weight between both he suggests. Pipelines are economically sensitive these days, due to their weightings in the energy ETFs. ENB, TRP and PPL have been particularly sensitive. He thinks the valuations warrant investment here.

PAST TOP PICK
(A Top Pick Jul 25/19, Down 1%) He would stay with it and it remains his favorite in the pipeline space. Trades only 8 times cash flow and has a great dividend yield. The negative sentiment right now gives investors a great opportunity now.
BUY ON WEAKNESS
Line 5 issues? They have been in the news a lot lately. An anchor became dislodged on their Eastern portion, but a judge forced an injunction to shut down the western section as well. On Canada Day, the western portion was allowed to reopen. Line 5 is only 2.5% of the companies EBITDA, so it won't make or break the company. But it is just another example of regulatory interference. From a fundamental perspective not a big issue. He is underweight energy, but would be a buyer in a sub-$40 range.
PAST TOP PICK
(A Top Pick Jun 17/19, Down 4%) It is one of his favourites in the group. It is the most miss-understood because they are involved in so many markets. They are well contracted and in a strong liquidity position. He would continue to hold it. He would be surprised to see a dividend cut.
BUY
US pipeline issues? We own ENB and have for a few years. Lower oil prices impacted their business, but they are financially sound. Over 95% of their capacity is contracted. Some lower production out of western Canada may impact short term earnings. Eventually Line 3 will be completed and Line 5 will be refurbished. With a yield above 7%, it is an attractive hold.
BUY
It is down more than you'd expect in a recession, due to the oil price. They reconfirmed their outlook for the year. They have been able to find cost cutting opportunities. He thinks this is the time to buy it. It is a really safe way to take advantage of the recovery.
HOLD

Preferred H shares? The preferreds are yielding about 9%. This was issued at $25 originally with a yield just over 4%. Buying at $11.50 affords the high yield. It will reset in 2023, around 2.5% based on current interest rates (versus the 4% it was originally issued at). If interest rates go up in 2023 the yield will increase, but do investors think rates will be that much higher?

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