Enbridge expands in wind

Article Excerpt

ENBRIDGE, $48.99, is a buy. The firm (Toronto symbol ENB; Shares o/s: 2.1 billion; Market cap: $104.1 billion; TSINetwork Rating: Above Average; Yield: 7.5%; www.enbridge.com) continues to expand its renewable power operations as it aims to cut its greenhouse gas emissions to “net zero” by 2050. Green energy investments also increase its appeal with big institutional investors, who value ESG (environmental, social, and governance) scores. The company invests about $1 billion annually in renewable projects. They now contribute 3% of its gross earnings. Most of those funds will go to expanding its offshore wind power projects in Europe. For example, it already has a 25.5% stake in an offshore wind farm near France (state-owned EDF Group owns the remaining 74.5%) and plans to participate in future offshore projects. These projects typically come with 20-year agreements to sell power to the government at prices that rise with inflation. That cuts risk. Enbridge is a buy. buy…