7 Core Growth Stocks for Your Portfolio – Enbridge Inc (USA) (ENB)

Competition: While pipelines have struggled to get approval, rail is picking up the slack. Canadian National Railroad has been a big beneficiary of this trend. Analysts predict that the company will ship 110,000 b/d this year. By 2015, that figure could grow to 300,000 b/d accounting for 7%-8% of the company’s revenues.

Interest Rates: Yes, the biggest threat to a pipeline company isn’t politics or oil spills, it’s rising interest rates. Pipeline stocks have benefited handsomely as yield starved investors switch out of low paying bonds and into safe, dividend paying stocks. But in the past six months, the yield on 30- year U.S. Treasury bonds have increased from 2.5% to 3.6%. This makes holding risky equities like Enbridge Inc (USA) (NYSE:ENB) less attractive.

Foolish bottom line

Enbridge is a company that combines exceptional growth with exceptional pricing power. That’s why it belong as a core holding in your portfolio.

Robert Baillieul has no position in any stocks mentioned. The Motley Fool recommends Canadian National Railway (NYSE:CNI).

The article 7 Core Growth Stocks for Your Portfolio – Enbridge originally appeared on Fool.com.

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