Here's Why Enbridge Is a No-Brainer Dividend Stock
Enbridge (NYSE: ENB) operates in the energy patch, which might leave some investors worried about volatile cash flows. These worries are not unfounded, given the impact that rising and falling oil and natural gas prices can have on drillers. However, Enbridge is a midstream company -- and that changes the equation in a big way, making it a highly reliable dividend stock. Here are some charts to show why you might want to jump aboard.
Midstream companies like Enbridge help to move oil and natural gas from where they are produced to where they get used. They own things like pipelines, storage, transportation, and processing assets. Demand for this vital infrastructure tends to remain fairly constant no matter the price at which oil and natural gas trade. Enbridge and other midstream companies generally charge fees for the use of their assets, sort of like charging a toll for the use of a bridge.
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Source Fool.com
