The Globe and Mail reports in its Wednesday edition that Campbell Lee & Ross
Investment Management manager Darren Sissons recommends buying Enbridge ($50.61). The Globe's John Heinzl writes that Enbridge has an annual yield of 4.8 per cent. Mr. Sissons notes pipeline operator Enbridge is "a
critical cog of North American
energy infrastructure." Yet, the share price has
skidded about 10 per cent this
year, hurt by low oil prices and
concerns about Enbridge's long-term
growth outlook. However, Mr. Sissons
says another factor may be
at play: the recent $37-billion
acquisition of U.S.-based Spectra
Energy Corp. that was paid for
with Enbridge common shares.
Mr. Sissons says, "Spectra shareholders have since
been net sellers of their Enbridge
shares and that, coupled with a
recent earnings miss, has temporarily
provided an attractive
entry point for the stock." Even as its shares are in a
slump, Enbridge has said it
expects to raise its dividend by 10
per cent to 12 per cent annually
through 2024. The Globe reported that BMO analyst Ben Pham called Enbridge his "best idea" in energy infrastructure on March 7. He rated the shares "outperform." Enbridge shares could then be had for $55.23.
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