Is Enbridge Stock a Buy Now?
Investors always have to consider the trade-offs they are making when they pick one investment over all of the others available to them. Right now the buy decision around Enbridge (NYSE: ENB) isn't quite as strong as it was just 12 months ago. But this reliable dividend payer still has some positives to offer.
Here's why Enbridge is still a buy for the right kind of income investor.
Canadian-based Enbridge is a North American midstream giant. It owns the pipelines and other energy infrastructure that helps to move oil and natural gas around the world. This tends to be a very reliable business, driven by fees for the use of the company's vital assets. The price of oil and natural gas aren't nearly as important to the company's financial results as the demand for these energy sources, which tends to remain high even when energy prices are low. The midstream business makes up roughly 75% of Enbridge's earnings before interest, taxes, depreciation, and amortization (EBITDA).
Source Fool.com
