Why Enbridge's Low-Risk Customer Base is a Win for Shareholders

Core Insights - Enbridge Inc. (ENB) reports that over 95% of its customers possess an investment-grade credit profile, indicating strong creditworthiness and suggesting stable income for the company [1][7] - The predictable cash flow from long-term contracts with high-credit clients reduces ENB's vulnerability to oil and natural gas price volatility [2][7] - ENB has a history of rewarding shareholders with consecutive dividend increases for three decades, currently offering a dividend yield of nearly 6%, which is higher than the industry average of 5.2% [3][7] Business Model and Stability - ENB's stable business model is supported by long-term contracts and a customer base with high credit ratings, ensuring lower exposure to market fluctuations [2][5] - Other midstream energy companies like Kinder Morgan (KMI) and Enterprise Products Partners LP (EPD) also exhibit stable business models and higher dividend yields compared to the oil-energy sector, with EPD offering a yield of 6.8% [4][5] Financial Performance - ENB's shares have appreciated by 37.6% over the past year, outperforming the industry composite stocks, which saw a 34.9% increase [6] - The company's current valuation shows an enterprise value to EBITDA (EV/EBITDA) ratio of 15.20X, above the industry average of 13.93X [9]