Enbridge's Consistent Dividend Yield Attracts Long-Term Investors

Enbridge is a large North American midstream company that operates regulated natural gas utilities and clean energy assets. Its simple business model belies its complexity, but one thing is clear: Enbridge offers a reliable 5.3% dividend yield. This yield is backed by a 31-year history of annual dividend increases in Canadian dollars.

The company's midstream operations are largely fee-based, allowing it to produce stable cash flows despite commodity price volatility. But Enbridge's real goal isn't just to run pipelines; it's to provide the world with energy. To that end, it's shifting its business towards cleaner energy options, including regulated natural gas utilities and renewable power assets.

The company's clean energy assets are backed by long-term contracts, providing reliable cash flows. Enbridge is attempting to recreate the stable cash flows of its pipelines in other areas of the energy sector. This approach makes dividend investors like Reuben Gregg Brewer comfortable continuing to buy more stock.