Focus on safe yields

Article Excerpt

Welcome to your latest issue of Dividend Advisor., and our focus on income stocks aimed at seeing you through the current market downturn and on to future gains. With the COVID-19 market drop in March, the yields of most dividend payers have risen—in many cases, dramatically. Ordinarily in this column, we look at a “Yield to Caution” stock. Namely, a dividend payer offering you an exceptionally high and attractive yield, but one, which we point out, will likely prove unsustainable. But this month, with so many top-quality stocks now offering high yields, we’re highlighting a pick with great dividend sustainability despite its now-higher yield. And, even with COVID-19, it offers you strong growth ahead. ENBRIDGE INC. $41 is a buy. The pipeline operator (Toronto symbol ENB) now hands you a very high 7.9% yield. But 98% of its shipping is backed by firm long-term agreements with well-capitalized blue-chip oil refiners and integrated producers. That accounts for 97% of the company’s pipeline revenue and lays the groundwork for…