"An oil pipeline company, Enbridge is not the same as an oil producer. Hence, it is impacted by the volume of the oil and not the cost. As an entity, Enbridge doesn't have to worry about commodity prices but only the volume. The midstream energy company has pipelines that transport crude oil produced in North America and serves over 7 million U.S. customers."
"Enbridge has a yield of 5.98% and is exchanging hands for $47.53. Cramer thinks that the company offers downside protection and long-term growth potential. Enbridge runs a low-risk business, and it has strong fundamentals. It intends to add $8 billion worth of new projects next year, which could increase the cash flow. A higher cash flow means higher flexibility to increase dividend payouts."
Jim Cramer is a Mad Money host known for picking growth stocks that survive market volatility. He warns that very high dividend yields can be dangerous when companies cannot cover payouts, yet he identifies dividend stocks he views as different and recommendable. He picks Enbridge, Pfizer, and Realty Income as top dividend choices. Enbridge is a midstream oil pipeline company affected by volume rather than commodity prices, serves over 7 million U.S. customers, has renewable and natural gas utility exposure, yields 5.98%, and pays an annual $2.84 dividend while planning $8 billion of new projects next year. Pfizer yields 6.86% and is described as a 'bond equivalent' that offers decent returns despite limited share-price appreciation.
Read at 24/7 Wall St.
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