Patrick R. McDowell, CFP®, AIF® was quoted in a US News & World Report article featured on Washington’s Top News (wtop.com).
So far, 2019 has been very, very good to this Canadian energy company. Insulated from America’s interest rate anxiety and trade tariff squabbling, Enbridge is enjoying a bull run that is so 2013. The stock is up 17 percent, currently trading at $37 U.S. per share.
“We think ENB is still highly undervalued,” says Patrick R. McDowell, an investment analyst with Arbor Wealth Management, Miramar Beach, Florida. “It is also our largest holding.”
The current dividend yield sits above 6 percent “and after a few more years of dividend hikes Enbridge will be considered a dividend aristocrat,” McDowell says. Since 2011, quarterly payouts have nearly tripled to 73.8 cents per share — yet another sign of solid performance in a sector that’s had the crude kicked out it for years.
One advantage Enbridge has centers on its business model. It operates Canada’s largest natural gas distribution network as well as the longest crude oil and hydrocarbon transport system in North America.
Says McDowell: “We like the toll-booth nature of the business and think the dividend will grow around 10 percent per annum for the foreseeable future.”