Q: Enbridge is down 1% over the last ten years. Good yield but do you think it has much prospect of growing again? How do you think of the story here?
5i Research Answer:
We think ENB does look better than it has for a while. The company itself recently upped some of its guidance (marginally, but still). Lower interest rates help its fundamentals (lower expenses) and valuation/sentiment (its high yield becomes more attractive). We would not expect miracles: it does remain a low-growth story overall. But we do think conditions are right for at least some improving performance over the next couple of years.