Shares of Enbridge (NYSE: ENB) have declined by about 15% over the past year. While 2020 was a rough one for the energy market, the Canadian energy infrastructure giant’s financial results held up remarkably well as it expected to achieve its original cash flow forecast, so its stock trades at a much lower valuation. It’s so cheap that it’s getting too good to pass up, especially when adding its high dividend yield and growth potential.
Enbridge prides itself in having a low-risk business model built to withstand the oil market’s volatility. The company demonstrated its durability last year. Through the third quarter, earnings were roughly in line with 2019’s total despite significant headwinds in the oil market because of the COVID-19 outbreak. That had the Canadian company on track to deliver full-year results near the mid-point of its initial guidance range of CA$4.50 to CA$4.80 per share ($3.53-$3.77 per share), about 2% ahead of 2019’s tally. With cash flow growing and its stock price sliding, Enbridge now trades at a much cheaper valuation than it did at this time last year.