The expectation of investors that the Federal Reserve of the United States could lower its benchmark interest next month and a strong quarterly profits seem to have driven the Canadian stock markets higher, with the S&P/TSX Composite Index Stijs so far of 12.9% year. However, the impact of rates on global economic growth is a cause of concern.
Given the uncertainty, investors can consider investing in high -quality dividend shares with solid underlying companies and stable cash flows. These companies would help investors to earn stable passive income and at the same time deliver stability to their portfolios. Given their consistent payouts, these companies are less susceptible to broader market volatility. Investors can also reinvest dividends to achieve superior returns. Let’s look at this background at the next two dividend stocks that I am Bullish about.
Enbridge
Enbridge (TSX: ENB) operates a pipeline network that transports oil and natural gas in North America under an interpreter and long-term contract in the long term. It also has a low risk assets with natural gas and renewable electricity producing facilities that sell their power through PPAs (Power-Purchse Agreements).
Given its diversified and regulated asset base, the energy infrastructure company-based energy infrastructure company generates stable and predictable cash flows, so that it can consistently pay and increase dividends. It has paid uninterrupted dividends over the past 70 years and has also increased its dividend with an annual rate of 9%since 1995.
In addition, Enbridge continues with his backlog projects of $ 32 billion by making annual investments of $ 9- $ 10 billion. These investments can stimulate financial data and cash flows in the coming years. The management of the company predicts the adapted EBITDA (profit before interest, taxes, depreciation and amortization) to grow with an annual rate of 5% for the rest of this decade. Furthermore, the company has also strengthened its financial position by improving its net debt to EBITDA plural of five at the beginning of this year to 4.7 and to terminate the second quarter with a liquidity of $ 12.7 billion. Given all these factors, I believe that Enbridge is well equipped to continue to pay dividends at a healthier rate.
Canadian natural resources
Another stock I am bullish about is Canadan Natural Resources (TSX: CNQ), which has increased its dividend in the last 25 years by an annual percentage of 21%. The diversified and balanced activities, efficient and effective activities and the low capital investment requirement have reduced its expenses, reducing the breaking point and healthy greenhouse flows is generated. These reliable cash flows have enabled the oil and natural gax producer to consistently increase dividends, with its forward dividend yield currently at 5.72%.
In addition, the energy company established on Calgary has larger oil and natural gas reserves, with a considerable part of these reserves is a high-quality SCO (synthetic crude oil), light crude oil and NGLs (natural gas fluids). Moreover, this year the company intends to make a capital investment of more than $ 6 billion, which enhances the production options. The company is also an upgrade of its assets and improves operational efficiency to lower its operating costs, which could stimulate its profitability. The financial position looks healthy, with its liquidity at $ 4.8 billion at the end of the second quarter. It is also traded at a reasonable price-to-win of 12.3 of 12.3, making it an attractive purchase.
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