Investors looking for a quality company should take a look at Enbridge Inc (ENB), a Canadian energy company with a long and impressive track record of growth. The company has paid a dividend every year since 1953 which has been raised annually since 1995. The dividend of CAN$.50 in 1995 has been increased to an annual rate of CAN$1.70 in 2010 (the current dividend is shown as US$1.59 at Yahoo).
As a Canadian company, their government takes 15% of the dividend from foreign (U.S.) investors. Enbridge projects 10% annual growth for dividends in the coming years. Its business divisions are in liquid (petroleum) pipelines, natural gas and green energy (i.e. wind mills, etc.).
In Liquid Pipelines, an expansion of petroleum pipeline capacity should deliver higher earnings and cash flow after completing its 2 largest projects, the Canada and U.S. segments of the Alberta Clipper. It will be placed in service on April 1, 2010.
Enbridge is the general manager and owns 27% of the limited master partnership for Enbridge Energy Partners (EEP), mentioned in a prior article, owner of the Alberta Clipper. In Natural Gas, Enbridge Offshore secured 2 ultra-deep water developments in the Gulf of Mexico requiring an investment of US$750 million. Enbridge transports 40% of all gas in the Gulf of Mexico and 50% of deep water gas production. In the Green Energy business, Enbridge brought a 190-megawatt Ontario Wind Power project (2nd largest wind farm in Canada) online in 2009. The company is building a CAN$300 million expansion of the Sarina facility, adding 60 megawatts of capacity in 2010, making it one of the largest photovoltaic solar energy facilities in North America. Enbridge has interests in 460 megawatts of green power capacity from wind, solar, waste heat recovery and hybrid fuel cell generation.
Enbridge had record earnings of CAN$4.27, up 18% in 2009, with adjusted earnings per share of CAN$2.35 (coming in at the high end of company guidance). The company's guidance for 2010 is for adjusted earnings per share of CAN$2.50-$2.70 per share. The stock closed at US$44.26 Friday. Enbridge is a prominent company supplying energy to growing markets in Canada and the U.S. and has an outstanding record of raising dividends especially in the last 15 years. Enbridge's website is here.
Disclosure: No position