Enbridge (NYSE: ENB) is one of the largest midstream companies in North America, and it offers an attractive 7.3% dividend yield. That said, it won't be a great fit for all investors. And those who like the business might find the next few years troubling, even though the longer-term outlook is notably brighter. Here's some things you need to consider while you are making the buy, sell, hold call on Enbridge.
So the first reason that most investors will run across Enbridge is probably its ultra-high dividend yield. At 7.3%, there's a lot to like. But it doesn't stop at the yield. Enbridge has increased the dividend annually for 29 consecutive years. The dividend is also backed by a strong business, given Enbridge's investment-grade rating and the fact that the distributable cash-flow (DCF) payout ratio of 65% or so is comfortably in the middle of management's target DCF payout ratio range.
Image source: Getty Images.
Source Fool.com