Jim Cramer on Enbridge: "I Think This One Gives You a Ton of Downside Protection"

Enbridge Inc. (NYSE:ENB) is one of the stocks Jim Cramer recently shed light on. Cramer noted that it has been one of his long-time favorites. The Mad Money host said:

“I want to start with one that has long been my favorite. It’s called Enbridge… Best of all, the stock supports a dividend yield of just over 5.6%… I’m not talking much about these energy stocks… but that’s because we have a drill baby drill White House, and that generally leads to lower oil and gas prices… If we produce more oil, which we are doing, that is great for Enbridge and its compadres. Plus, this is an incredibly predictable business with a deep-pocketed customer base…

There’s a reason Enbridge has given you a total return of almost 20% year to date. Given the nearly 6% yield and the resilient business model, I think this one gives you a ton of downside protection. At the same time, though, Enbridge also has a terrific long-term growth story. Our country is desperate to produce more electricity to fuel the data center boom… We’re sitting on almost endless amounts of nat-gas here in America. It doesn’t hurt that we have all these natural gas export terminals being built. They all need pipeline access, too.

Plus, I had Enbridge in my mind this weekend after the company was flagged in a great article by RBN Energy, that’s Rusty Braziel’s firm… RBN put up this fantastic piece highlighting how Enbridge is in the early stages of a major pipeline expansion effort, which will help transport more crude oil from Canada and the Midwest down to the Gulf of Mexico. Sounds good to me, as does the entire Enbridge story, frankly, which makes this one of my top choices for anyone who wants some yield. When you put up more pipe, you can get a better distribution and distribution’s high anyway.”

Enbridge Inc. (NYSE:ENB) operates major energy infrastructure, as the company transports oil and natural gas and manages utility and renewable energy assets.

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Disclosure: None. This article is originally published at Insider Monkey.