10 Best Dividend Stocks Yielding at Least 7% According to Hedge Funds

3. Enbridge Inc. (NYSE:ENB)

Number of Hedge Fund Holders: 32

Dividend Yield as of May 28: 7.43%

Enbridge Inc. (NYSE:ENB) is a Canada-based pipeline transportation and crude oil company. The company reported a strong cash position in the first quarter of 2024, with an operating cash flow of C$3.2 billion and free cash flow of C$3.5 billion, up 9% from the same period last year. It has always remained committed to its shareholder return as it distributed approximately $34 billion to investors through dividends over the past five years.

Enbridge Inc. (NYSE:ENB), one of the best dividend stocks on our list, has been growing its dividends consistently for the past 29 years. The company offers a quarterly dividend of C$0.915 per share and has a dividend yield of 7.43%, as of May 28.

Enbridge Inc. (NYSE:ENB) is currently trading at a forward P/E ratio of 16.92, slightly lower than NextEra Energy Partners, LP (NYSE:NEP)’s forward P/E ratio of 18.92. This suggests that investors are valuing Enbridge’s future earnings somewhat more conservatively compared to NEP. In the past 12 months, the stock gained nearly 1%. Though the stock has underperformed the broader market over the past year, its dividend growth makes it a reliable investment. In its recent earnings report, the company announced that it expects to pay approximately $40 billion to shareholders through dividends over the next five years. In addition, the company is well-positioned to benefit from the boon in Canada’s energy sector. The S&P/TSX Composite Energy Index is up 16.72% this year so far, outperforming the broader market, as of May 29.

Enbridge Inc. (NYSE:ENB) was a part of 32 hedge fund portfolios at the end of Q1 2024, up from 28 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a total value of nearly $260 million.