Why Dividend Favorite Enbridge Stock Fell Today
Shares of Enbridge (NYSE: ENB) fell as much as 4.5% today before recovering to a more mild 3.6% loss by the end of Monday trading.
Even though Enbridge is mainly a North American pipeline, midstream, and storage operator, and has a lot of take-or-pay contracts that are fixed, the stock is still subject to oil and gas price fluctuations. Obviously, a pipeline operator needs its end-customer to do well in order for it to do well in the long run.
Unfortunately, Monday saw two negative catalysts happening at the same time. A prominent Wall Street analyst gave a bearish outlook for oil prices, and long-term interest rates continued their multi-month climb, putting further pressure on high-yield stocks.
Source Fool.com
