Enbridge (TSX:ENB)(NYSE:ENB) is the largest energy infrastructure company in North America. Shares of this top energy stock have climbed 9.2% in 2022 as of late afternoon trading on February 25. The stock is up 22% from the previous year.
Oil and gas prices have been on a tear since the beginning of 2021, but there are some bearish signs emerging in late February. The Russian invasion of Ukraine may end up representing the top for oil prices in this cycle. Iran is reportedly close to another nuclear deal with the United States. The lifting of sanctions would see Iranian oil flood the global market. Moreover, central banks have their eyes on rate tightening to combat inflation. This could put a dent in gas price growth.
Despite this, investors should have faith in the long-term prospects for Enbridge. It still boasts a massive project pipeline. In 2021, it delivered GAAP earnings of $5.8 billion or $2.87 per common share – up from $3.0 billion or $1.48 per common share in 2020. Meanwhile, adjusted EBITDA rose to $14.0 billion over $13.3 billion in the previous year.
Shares of this energy stock last had a favourable price-to-earnings ratio of 18. It offers a quarterly dividend of $0.86 per share. That represents a tasty 6.3% yield. Enbridge is a strong long-term bet that has nice value and a very strong dividend.