Yahoo Finance Enbridge Stock: Buy, Sell, or Hold in July 2024?
Written by Adam Othman at The Motley Fool Canada
The TSX has no shortage of high-quality blue-chip stocks that are staple holdings in many investment portfolios. These reliable stocks offer a lot of stability to self-directed portfolios. Well-capitalized, well-managed, and with the ability to provide shareholders their dividends regularly, they can be excellent long-term holdings.
Among them is Enbridge Inc. (TSX:ENB), a Calgary-based energy company that is quite popular with investors who have a long investment horizon. The question is: Is Enbridge stock an asset you should buy, sell, or hold right now?
Why you might want to buy Enbridge stock
Boasting a $104.2 billion market capitalization, Enbridge is one of the biggest TSX stocks in the Canadian energy industry and overall stock market.
Enbridge has an extensive energy infrastructure business that is responsible for transporting hydrocarbons produced and consumed in North America. It owns and operates pipelines throughout Canada and the US, transporting crude oil, natural gas, and natural gas liquids.
It boasts the largest and most complex pipeline system worldwide, transporting almost a third of all the crude oil produced in North America. Its network is also responsible for transporting a fifth of all the natural gas consumed in the US. These factors make it a stock vital to the regional economy, giving it a defensive appeal that many other energy companies might not have.
The top energy stock also has the largest natural gas utility business in North America. To align with the increasing shift toward green energy, Enbridge is also shoring up its renewable energy portfolio. With 40 facilities across Europe and North America already under its belt, it plans to continue growing its portfolio to future-proof itself in an increasingly cleaner energy industry.
Why some might want to sell it
Boasting several defensive avenues to generate revenue, Enbridge is an attractive stock. However, it is important to take things with a pinch of salt. As of this writing, Enbridge stock share prices have not exactly soared.
In fact, it is trading relatively flat compared to the broader market. Year-to-date, the S&P/TSX Composite Index is up by 8%. While it has had some ups and downs in the last few weeks, Enbridge stock is up by 0.93% year-to-date.
Looking at it from further back, the Canadian benchmark index is up by 36.7% over the last five years. In the same period, Enbridge stock is up by only 2.5%. If you are an investor seeking stocks that will deliver solid growth through capital gains, Enbridge stock might not be it for you.
The case to hold
Enbridge is still a staple in many investor portfolios due to its strong defensive appeal. Enbridge does not feel the effects of changing commodity prices like other energy stocks because it charges based on the volume transported, not the value of the commodities. Adding to it, its natural gas utility business and growing renewable energy business ensure it has significant cash flows.
The revenue it generates allows Enbridge stock to distribute regular quarterly dividends to its shareholders. At current levels, ENB stock boasts a juicy 7.5% dividend yield supported by strong cash flows. It has also increased its payouts to investors each year for almost 30 years, making it an attractive investment to hold.
Foolish takeaway
Considering its dividends and long-term growth prospects, Enbridge stock does not seem like a stock anyone should want to sell right now. If you own shares of it, you can hold onto them without worry and perhaps even increase your position by buying more.
The post Enbridge Stock: Buy, Sell, or Hold in July 2024? appeared first on The Motley Fool Canada.
Should you invest $1,000 in Enbridge right now?
Before you buy stock in Enbridge, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enbridge wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $16,110.59!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.
See the 10 stocks * Returns as of 6/20/24
More reading
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.
2024
