Core Viewpoint - Dividend stocks have historically outperformed non-payers, delivering an annualized return of 9.2% over the last 50 years compared to 4.3% for non-payers [1] Group 1: Dividend Stocks Performance - Companies that pay higher-yielding, steadily growing dividends have delivered the highest returns with the lowest volatility [2] - Enbridge currently offers a 6.3% dividend yield, significantly higher than the S&P 500's 1.3% yield [3] - Invitation Homes has a dividend yield of 3.5% and has increased its dividend every year since going public in 2017 [6][9] - Kenvue also offers a 3.5% dividend yield and has initiated its dividend payments in 2023, continuing the legacy of its former parent company, Johnson & Johnson [9][10] Group 2: Company-Specific Insights - Enbridge generates stable cash flow, with 98% of its earnings coming from cost-of-service or contracted assets, allowing it to pay out 60%-70% of its cash flow in dividends [3][4] - Enbridge has a multibillion-dollar backlog of capital projects, including natural gas pipelines and renewable energy developments, ensuring future growth and dividend increases [5] - Invitation Homes reported a same-store net operating income growth of 4.6% last year, benefiting from strong demand for single-family rental properties [7] - Invitation Homes is actively expanding its portfolio, having purchased 2,200 homes for $765 million last year, which supports future rental income growth [8] - Kenvue's portfolio generated nearly $15.5 billion in sales last year, with $1.3 billion in free cash flow, positioning it well for continued dividend increases [11] Group 3: Investment Strategy - Enbridge, Invitation Homes, and Kenvue are identified as high-quality, high-yielding dividend stocks that are expected to continue increasing their payouts, contributing to portfolio growth [12]

Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering from Texas A&M with a focus on applied mathematics and machine learning.Samuel leads the High Yield Inve ...

Enbridge Inc. (ENB) is currently considered relatively overvalued, trading at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 14.86x. This figure surpasses the broader industry average of 14.41x. It is higher than other major midstream companies such as Kinder Morgan Inc. (KMI) and Enterprise Products Partners LP (EPD) , which trade at 13.63x and 10.64x EV/EBITDA, respectively. This premium valuation reflects the market’s confidence in Enbridge’s prospects. Image Source: Zacks Investment Resea ...

Investment Opportunities in the Energy Sector - Approximately 40% of tax filers receive a refund annually, presenting an opportunity for investment in the energy sector, which can potentially grow the value of these refunds [1][2] - Enbridge, NextEra Energy, and Kinder Morgan are highlighted as strong candidates for investment with tax refunds or other cash sources [2] Enbridge Overview - Enbridge offers a high dividend yield of 6.2%, significantly above the S&P 500's 1.2% and the average energy stock's 3.3%, making it attractive for yield-seeking investors [3][4] - The company has a 30-year history of annual dividend increases, showcasing its resilience in the volatile energy sector [4] - Enbridge's midstream business model, which charges fees to connect energy producers with downstream companies, ensures stable cash flow even during downturns in the energy industry [5] - Approximately 75% of Enbridge's EBITDA is derived from oil and natural gas pipelines, while the remainder comes from regulated natural gas utilities and renewable energy investments, providing diversification [6] - The primary concern for investors is that the yield may constitute the majority of total returns, but it remains a strong option for high-yield energy investments [7] NextEra Energy Overview - U.S. electricity demand is projected to increase by 55% over the next two decades, driven by factors such as onshoring manufacturing and AI data centers, which aligns with NextEra Energy's strategy [8][9] - NextEra Energy is the world leader in renewable energy and operates one of the largest natural gas-fired generation fleets, positioning it well to meet the rising demand for cleaner energy sources [9][10] - The company anticipates operating about 75 gigawatts of renewable energy capacity by the end of 2027, which would surpass the installed capacity of all but seven countries [10] - NextEra Energy expects adjusted earnings growth to remain at the top end of its 6% to 8% annual target range through at least 2027, alongside a projected 10% annual growth in its 3.2% yielding dividend [11][12] Kinder Morgan Overview - Kinder Morgan's stock performed exceptionally well in 2024, with a 55% increase, significantly outperforming the S&P 500 [13] - The company operates the largest natural gas transmission network in the U.S., covering nearly 66,000 miles and transporting about 40% of the nation's natural gas, which supports predictable cash flows [14] - Kinder Morgan has increased its dividend for eight consecutive years, reflecting stability in its cash flows [15] - The company expanded its backlog to $8 billion in 2024, up from $3 billion in 2023, and expects to put around $2 billion of this backlog into service, projecting double-digit growth in adjusted earnings per share [16]

Core Investment Thesis - Enbridge offers a dividend yield exceeding 6%, positioning itself as a top choice for income-seeking investors [1][9] - The company emphasizes its stable cash flow and long history of dividend increases as key factors for investment consideration [2][9] Dividend Stability and Cash Flow - Enbridge's earnings are primarily derived from cost-of-service or contracted assets, providing predictable cash flows [3] - The company has achieved its annual financial guidance for 19 consecutive years, demonstrating resilience through various market challenges [3] Diversification and Growth Strategy - Enbridge has expanded its earnings base by acquiring U.S. gas utilities, becoming the largest operator of stable gas utilities in North America [4] - The company is also investing in renewable energy and gas pipeline operations to enhance cash flow stability [4] Payout Ratio and Financial Health - Enbridge targets a conservative payout ratio of 60% to 70% of its stable cash flow for dividends, allowing for significant retained earnings for expansion [5] Project Backlog and Future Growth - The company has a capital project backlog valued at CA$26 billion (approximately $18.3 billion), with new projects expected to drive growth through 2029 [6] - Enbridge anticipates 3% to 5% annual cash-flow-per-share growth, supporting continued dividend increases [8] Conclusion on Investment Opportunity - Enbridge is characterized as a "first-choice" investment opportunity due to its attractive yield, visible long-term growth, and low-risk cash flow profile [8][9]

Core Viewpoint - Enbridge Inc. will hold its annual investor conference on March 4, 2025, to discuss its strategic plan, business unit priorities, and financial outlook [1][2] Group 1: Conference Details - The investor conference is scheduled for 9 a.m. ET (7 a.m. MT) on March 4, 2025 [1] - The conference will be webcast live and available on Enbridge's 'Events and Presentations' page [1][2] - Presentations and supporting materials will be posted on the website the morning of the event, with a replay and transcript available shortly after [2] Group 2: Company Overview - Enbridge connects millions to energy through its North American natural gas, oil, and renewable power networks, as well as its European offshore wind portfolio [3] - The company is focused on investing in modern energy delivery infrastructure to ensure secure and affordable energy access [3] - Enbridge has over a century of experience in conventional energy infrastructure and two decades in renewable power, advancing technologies like hydrogen, renewable natural gas, and carbon capture and storage [3]

Company Overview - Enbridge is one of the largest midstream companies globally, with a market capitalization of nearly $100 billion [2] - The company has been making significant investments in its business, indicating a commitment to growth [2] Financial Performance - Despite concerns regarding its balance sheet, Enbridge continues to pay dividends, showcasing its financial resilience [2] Investment Strategy - The Value Portfolio focuses on building retirement portfolios through a fact-based research strategy, which includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [2]

Core Insights - Enbridge Inc. reported fourth-quarter 2024 adjusted earnings per share (EPS) of 53 cents, exceeding the Zacks Consensus Estimate of 52 cents and up from 47 cents in the same quarter last year [1] - Total quarterly revenues reached $11.6 billion, a significant increase from $8.4 billion in the prior-year quarter, also surpassing the Zacks Consensus Estimate of $4.8 billion [1][2] Financial Performance - The strong quarterly results were driven by higher Adjusted EBITDA contributions from major business segments including Liquids Pipelines, Gas Transmission, and Gas Distribution and Storage [2] - Liquids Pipelines segment reported adjusted EBITDA of C$2.4 billion, slightly up from C$2.37 billion year-over-year, supported by contributions from the Mainline System and Regional Oil Sands System [4] - Gas Transmission segment's adjusted earnings totaled C$1.27 billion, an increase from C$1.08 billion in the previous year, aided by higher contributions from the U.S. gas transmission segment [5] - Gas Distribution and Storage segment generated a profit of C$1,015 million, up from C$519 million, primarily due to increased contributions from U.S. Gas Utilities [6] - Renewable Power Generation segment recorded earnings of C$308 million, up from C$141 million [6] - Distributable Cash Flow (DCF) for the quarter was C$3.07 billion, an increase from C$2.73 billion a year ago [7] Balance Sheet - At the end of the fourth quarter, Enbridge reported long-term debt of C$93.4 billion and cash and cash equivalents of C$1.8 billion, with a current portion of long-term debt at C$7.7 billion [8] Outlook - For 2025, the company forecasts adjusted EBITDA (on base business) to be in the range of $19.4-$20.0 billion and DCF per share to be between $5.50-$5.90 [9] - Enbridge reaffirmed its near-term growth outlook for 2023 to 2026, projecting a 7-9% growth for adjusted EBITDA and 3% for DCF per share [9]

Core Viewpoint - Midstream energy stocks, particularly Enbridge and Energy Transfer, have shown significant performance over the past year, with Enbridge rising 33% and Energy Transfer 42% [1] Company Comparison - Enbridge operates extensive pipeline networks in both Canada and the U.S., while Energy Transfer's operations are solely within the U.S. [2] - Enbridge is more diversified, ranking as the largest North American natural gas utility company following acquisitions in 2023 [3] - Enbridge has a market cap of approximately $99 billion, with adjusted earnings exceeding CA$6 billion and distributable cash flow nearing CA$12 billion last year [3] - Energy Transfer's market cap is around $68 billion, with 2024 earnings projected at $1.08 billion and distributable cash flow of $1.98 billion [4] Growth Prospects - Enbridge anticipates adjusted EBITDA between CA$19.4 billion and CA$20 billion in 2025, indicating a year-over-year growth of nearly 17% at the midpoint [5] - Energy Transfer expects adjusted EBITDA between $16.1 billion and $16.5 billion for this year, reflecting a year-over-year increase of about 5% [5] - Both companies face similar industry dynamics and opportunities, suggesting comparable long-term growth prospects [6] Dividends - Enbridge offers a forward dividend yield of 6.05%, while Energy Transfer has a higher forward distribution yield of 6.58% [7] - Enbridge has a strong track record, having increased its dividend for 30 consecutive years, whereas Energy Transfer reduced its distribution in 2020 but resumed growth in 2022 [8] Valuation - Energy Transfer's valuation appears more attractive, trading at 10.7 times forward earnings compared to Enbridge's 21.5 times [9] - The price-to-sales ratio for Energy Transfer is 0.82, significantly lower than Enbridge's 2.87 [9] - The enterprise-value-to-EBITDA ratio for Energy Transfer is 0.82, while Enbridge's is 2.87, indicating a more favorable valuation for Energy Transfer [10] Investment Recommendation - Both Enbridge and Energy Transfer are considered strong options for income investors, but Energy Transfer is favored for its higher yield and appealing valuation [11] - Enbridge may be more suitable for investors seeking stability and those wanting to avoid tax complications associated with limited partnerships [11]

Core Viewpoint - The company Enbridge has been upgraded to a Buy rating due to its strong pipeline of growth projects in Liquids Pipelines and Gas [1] Group 1: Company Overview - Enbridge operates in the energy sector, focusing on pipeline infrastructure for liquids and gas [1] - The company has a history of managing a diverse portfolio and aims to achieve long-term returns that match or exceed the S&P 500 with lower volatility and higher income [1] Group 2: Investment Strategy - The investment approach emphasizes long-term holdings unless compelling reasons arise to sell [1] - The strategy seeks to maximize total return over time by purchasing assets when their prices are low relative to intrinsic value [1]