Enbridge: My Hybrid Investment Approach Pays Off

  • Enbridge's robust DCF easily covers both common and preferred dividends, with preferred payouts requiring just 3% of pre-dividend DCF. The Series 11 preferred shares offer a 6.6% yield, fixed until 2030, providing an attractive risk/reward profile versus Canadian government bonds. A hybrid approach—owning both common and preferred shares—balances upside participation with stable, high-yield income.