Fortis and Enbridge are two Canadian companies that are often compared to determine which presents a better investment opportunity. Fortis is a utility company with a low-risk business model and a history of increasing dividends. The company plans to invest $25 billion from 2022 to 2028 and aims to raise dividends by 4 to 6% annually through 2028. On the other hand, Enbridge is a midstream energy company with a strong track record of dividend payments and acquisitions. It offers an attractive forward yield of 7.50% and is focused on reducing its debt-to-equity ratio and expanding its asset base. Enbridge appears well-positioned to sustain its dividend growth.
In addition to Fortis and Enbridge, there are other dividend stocks that investors should consider in April. According to an article from InvestorPlace, three dividend stocks stand out as potential investments. The first stock is Enbridge (ENB), an energy company that operates pipeline systems in Canada and the U.S. It has a diversified portfolio of energy assets and solid prospects for growth. The second stock is T-Mobile (TMUS), a leading telecommunication service provider with rising profits and a high dividend yield. The third stock is Johnson & Johnson (JNJ), a pharmaceutical company with a strong dividend history and predictable growth. The article highlights the financial performance and market prospects of each stock [88324048].
Enbridge stock is currently trading at a discount, nearly 15% off its 52-week high. The stock is considered an excellent long-term investment due to its massive size, essential operations in the North American economy, and consistent cash flow. Enbridge is undervalued, trading at a lower forward P/E ratio and forward EV/EBITDA ratio compared to its historical averages. Additionally, its forward dividend yield of roughly 7.8% is attractive and shows that the stock is undervalued. Enbridge is expected to continue growing its earnings per share at a rate of 4-6% annually over the next three years. Overall, Enbridge is considered one of the best long-term dividend stocks to consider on the TSX.
CSX Corporation (CSX) is another dividend growth stock worth considering. The company, based in Jacksonville, Florida, focuses on commodities and merchandise. Despite facing headwinds like inflationary pressures, CSX has navigated challenges effectively with diversified revenue streams. CSX continues to impress with its resilience, operational performance, and long-term growth potential, despite recent stock price underperformance. The company confirmed its thesis and revealed key details regarding operating efficiencies and favorable economic trends that could bode well for its valuation. CSX is well-positioned to leverage opportunities from industrial development and reshoring trends, making it one of the best ideas in the dividend growth space [0b7ea0ad].
Railroad stocks are set to soar due to overlooked growth and stocks that have been tossed overboard. The US economy is still in growth mode and consumer spending is rising. Union Pacific (UNP) and CSX Corp. (CSX) have seen their share prices decline this year. The market has largely been powered by NVIDIA (NVDA) and Microsoft (MSFT). The Fed is expected to cut rates if economic numbers start to fade, which would benefit the railways. The ongoing tariff wars are likely to continue, leading to more manufacturers shifting production to the US. CSX and UNP are both poised to benefit from these trends. CSX has seen a 50% increase in its dividend in the last five years and is expected to see rising volumes due to economic growth and the factory boom. UNP has a higher yield and its dividend growth has been stagnant, but it is expected to close the gap and see future hikes. Both stocks have potential for price gains and dividend growth [b7e140fc].
Canadian National Railway (TSX:CNR) is indispensable to North America’s economy. It enjoys a major advantage in the railroad industry and has strong profitability. Alimentation Couche-Tard (TSX:ATD) is a Canadian gas station company that operates the well-known Circle K gas station chain. It is a good long-term play due to its management's track record, involvement in fuel sales, and reasonable valuation. Fortis (TSX:FTS) is one of Canada’s most dependable utility companies. It is a Dividend King with a lot of debt but potential value at its current price. These three Canadian stocks, Canadian National Railway, Alimentation Couche-Tard, and Fortis, are recommended as long-term investments [45189d67].