Here's Why You Could Hold This Safe Stock for a Decade

There's no question that the demand for clean energy is set to keep expanding in the future. But that doesn't mean the shift away from carbon fuels will be swift. In fact, it is far more likely that the world will need all of the energy sources it currently has as well as new ones to meet the demands of a growing global population. That gives Enbridge (NYSE: ENB) plenty of time to milk its cash-cow operations while building out its still-small renewable power portfolio.

Canada's Enbridge sports an $84 billion market capitalization. The company claims to move about 30% of the crude oil produced in North America -- 58% of earnings before interest, taxes, depreciation, and amortization (EBITDA) -- and around 20% of the natural gas consumed in the United States (26% of EBITDA). It also operates the third-largest natural gas utility by customer count (12% of EBITDA). It is, thus, firmly entrenched in the carbon-energy business. And with demand for these fuels expected to grow by 18% through 2040, according to the International Energy Agency (IEA), there's plenty of demand left to support these operations.

The key here, however, is that Enbridge is a midstream company, so it transports these fuels for a fee. The natural gas utility, meanwhile, is regulated and a highly stable cash generator. So the ups and downs of oil and natural gas, which are volatile commodities, don't play a huge role here.

Source Fool.com