I recently added Canadian midstream giant Enbridge (NYSE: ENB) to my portfolio because of its generous and well-supported dividend and efforts to contribute to a cleaner-energy future. But every investment comes with risks, and they need to be considered carefully. So here's a look at the risks that I think are big ones for Enbridge and need to be monitored over time.
Enbridge has material ties to the carbon-based energy world. There is no way around that fact, with 53% of 2020 EBITDA coming from its oil pipelines, 29% from natural gas pipelines, and 14% from a gas distribution business. While natural gas is likely to increase in importance as the world shifts away from dirtier energy alternatives, like coal and oil, they are still carbon based and definitely not clean energy.
Image source: Getty Images.
Source Fool.com