"Enbridge Inc. (NYSE: ENB), already Canada's largest shippers of crude oil, is positioning itself to be the dominant distributor of Alberta's oil sands output," notes Tom Slee in Gordon's Pape's The Income Investor.
"The company is in excellent shape. Operating profit in the second quarter rose to $129.5 million, equal to 36 cents a share, up from $118.7 million the year before.
"All of the company's numerous, well-funded projects are on track and should start contributing to profits in 2009. There were no surprises or fireworks in the financial statements, just solid growth, exactly what we need in these volatile markets.
"It has a short- and a long-term program that involves $8 billion worth of projects at an advanced stage and a further $10 billion worth of undertakings on the drawing boards.
"Given the company's excellent record of project management, these additions should underwrite steady earnings growth for the foreseeable future. In turn, this is likely to trigger a string of dividend increases. Enbridge has always taken care of its shareholders.
"As a matter of fact, over the past 50 years this well-managed quasi-utility has returned an average of 13.3% annually to its investors. I think that we are going to see the same sort of performance in the years ahead.
"Equally important during these troubled times, the stock has downside protection thanks to a $1.23 dividend. We rate the stock, currently yielding 3.5%, a buy."
Each day, Steven Halpern's TheStockAdvisors.com features the latest investment commentary and favorite stocks of the nation's leading financial newsletter advisors.
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