A reader asks John Heinzl: With the increasing emphasis on environmentally responsible investing and the push to go green, do you see the pipeline company Enbridge continuing to be a successful long-term investment?: Enbridge’s yield was attractive even before coronavirus fears sent the market down sharply. Now, with the stock dropping about 12 per cent over the past few weeks, the yield has risen to about 6.3 from 5.7 per cent in mid-February.
Enbridge forecasts that it can grow its distributable cash flow per share by about 5 to 7 per cent annually after 2020 and raise its dividend by a similar amount. Analysts see that as realistic and are generally bullish on the shares. Of the 25 analysts who follow the stock, there are 14 buy recommendations, 10 holds and one sell, according to Refinitiv. The average one-year price target is $57.59. The stock closed Friday at $50.98 on the Toronto Stock Exchange.