3. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 24
Stock Price as of July 7: $41.28
Enbridge Inc. (NYSE:ENB) is a Calgary, Alberta-based pipeline company.
Enbridge Inc. (NYSE:ENB) stock offers an attractive dividend yield of 6.5%, a strong growth outlook, and a healthy balance sheet. Enbridge Inc. (NYSE:ENB) has increased its dividend at a compound annual growth rate (CAGR) of 10% in the last 27 years. The company has the distinction of holding the biggest crude oil pipeline network in North America and the second biggest natural gas transmission pipeline in the US. Enbridge Inc. (NYSE:ENB) considers itself well protected against the impact of inflation. 80% of its revenue is one way or the other connected to mechanisms that are indexed with inflation. Furthermore, Enbridge Inc. (NYSE:ENB) would not bear the impact of inflation on capital expenditure as the majority of the capital outlay for the year is already locked via contracts.
Here’s what ClearBridge Investments said about Enbridge Inc. (NYSE:ENB) in its Q3 2021 investor letter:
“We are meaningfully overweight energy, particularly within North American energy infrastructure. Enbridge and Williams, our two infrastructure holdings, possess crown jewel infrastructure assets. They each deliver meaningful proportions of the overall energy produced and consumed in North America. Their revenues are backed by long-term contracts with high-quality counterparties and have little direct commodity price exposure. Their growth has been driven by the increasing production of North American energy. The advent of unconventional oil and gas production (oil sand and shale) has made North America a low-cost competitor on a global basis. We expect strong North American production to be an enduring feature of global energy supply for decades to come.”
Enbridge Inc. (NYSE:ENB) was held by 24 hedge funds at the end of Q1 2022.
