This 7.9%-Yielding Dividend Stock Is Working to Ensure It Has Plenty of Fuel to Continue Growing Its Payout in the Decades Ahead
Enbridge (NYSE: ENB) can see the writing on the proverbial wall. It knows that the world needs to wean itself from its addiction to fossil fuels and switch to cleaner alternatives. That has led the Canadian pipeline and utility giant to steadily pivot its business toward lower-carbon energy.
The company's investments in lower-carbon energy will help grow and sustain its cash flows so that it can continue increasing its high-yielding dividend (currently yielding 7.9%). The company made lots of progress on its strategy last year, which its management team discussed on the fourth-quarter conference call.
Enbridge is taking a multipronged approach to the energy transition. One aspect of its strategy is to acquire infrastructure assets that supply it with incremental cash flow and growth potential. The company is in a strong position to find deals. CEO Greg Ebel commented on the call, "Our scale and diversification and investing approach to renewables allows us to continue to find attractive opportunities even as returns compress for many across the sector."
Source Fool.com
