With the latest strengths in oil prices, the fossil fuel scene has begun to take some serious traction and is the king of the Canadian pipeline. Embridge (TSX: ENB)(NYSE: ENB) The trend continues until the end of the year, so you have the potential to win. Middle-class players kept their payouts safe and healthy, despite the severe pressure that most other managers would have caused a significant reduction in payments in the middle.
Dividend Promise to Embridge Shareholders
Embridge’s management is one of the most shareholder-friendly teams in the world, swimming for a very long time to satisfy income investors during difficult times. The company increased its dividend, but I didn’t think it was at risk. why? Management has actively elicited other means to maintain its commitment. Unlike most other companies, Embridge dividends are a promise to investors. Not only that, dividend growth is part of the promise.
Energy headwinds will eventually fade
For years, Embridge has stood up against headwinds. The coronavirus pandemic could end next year (hopefully), and the pipeline kingpin may finally be ready to explode. For many investors, it’s hard to remember what it was like to make things work in their favor. As crude oil prices continue to rise, I suspect that investment will be returned to the sick energy sector. Fossil fuels aren’t sexy, it doesn’t matter where the company is in the stream or how diversified the business is.Green energy is sexy, and it’s mainly due to the rise with Elon Musk Tesla stock.
Anyway, many EV and clean energy inventories have been bid for unfair evaluation. Investors are once again interested in earnings and value, so I suspect they will be in a hurry to return to their fossil fuel lovers. Of all the plays, Embridge is at the top of my shopping list.
Higher oil and green initiatives are a good omen for embridged stocks
With the move to green energy, the company is losing its reputation as an old-fashioned energy stock. Calvados offshore wind projects have the potential to regain many shareholders who have fled the scene in favor of ESG-friendly theater. The wind will not soon be the main needle mover for Embridge, but I am confident that many future investors will appreciate this move. Do you know? Green energy could one day be meaningful to complement the company’s pipeline business.
Meanwhile, Embridge continues to generate stable cash flow from its vast assets. I think the regulatory and environmental hurdles will continue, but I think dividends are more than enough incentive to survive such an unstable match.
In any case, the stock price seems to be significantly undervalued, 1.7 times that of books and 2.4 times that of sales. In particular, the latter half of 2021 looks like a booming environment that is friendly to the tattered energy play that collapsed like a paper bag in 2020. Looking for an embridge, I believe the 7.2% yield dividend is ripe to choose before the admission to ENB shares goes up, perhaps much earlier.
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Stupid contributor Joey Frenet There are no positions in any of the listed stocks. David Gardner I own a stake in Tesla. Tom Gardner I own a stake in Tesla. Motley Fool owns and recommends shares in Enbridge and Tesla.
Top stocks to buy in mid-April: Embridge (TSX: ENB)
https://www.fool.ca/2021/04/16/top-stock-to-buy-in-mid-april-enbridge-tsxenb/ Top stocks to buy in mid-April: Embridge (TSX: ENB)