Enbridge (NYSE: ENB) is the kind of company that a dividend investor can buy and comfortably own for years. The attractive 6.5% dividend yield could set you up for life with a reliable and substantial passive income stream to pay for everyday living expenses. Or you could compound that dividend via dividend reinvestment and grow your position until you want to turn on the income stream.

But the dividend isn’t the only reason why you should like Enbridge.

In North America, Enbridge is one of the largest players in the midstream segment of the energy sector. This business is a toll taker, with the company largely charging fees for the use of its vital infrastructure assets, like pipelines, storage, and transportation facilities. Since the top and bottom lines are driven by fees, the price of oil and natural gas aren’t all that important to the company’s business. The volume that passes through its infrastructure system is what really matters. And energy demand, which helps drive volume, tends to be robust even when energy prices are low.

This core business is what has long backed Enbridge’s dividend. A dividend that has been increased, in Canadian dollars, each and every year for 29 consecutive years. Simply put, if you are looking at Enbridge, you need to make sure you have a good understanding of its pipeline operations. But there’s a twist here that you also have to know about.

Oil pipelines account for roughly 50% of earnings before interest, taxes, depreciation, and amortization (EBITDA). Natural gas pipelines make up another 25%. That brings the total EBITDA from the midstream business up to 75%. Clearly, this is the most important aspect of Enbridge, but there’s another 25% of EBITDA to consider, and it might be even more important than the pipelines, at least when you think about the distant future.

About a year ago, the percentages noted above were different. Oil pipelines comprised roughly 57% of EBITDA with natural gas pipes ringing in at 28%. The change came from the company’s acquisition of three regulated natural gas utilities from Dominion Energy. This pushed the company’s regulated natural gas business up to 22% of EBITDA from 12% (and reduced its exposure to the midstream sector).

Regulated utilities provide consistent cash flows, just like pipelines. So, this move supports Enbridge’s ability to keep paying and growing its dividend. But the really important part of the story is that it fits well with the company’s long-term goal of changing with the world around it. That change is the shift toward cleaner energy options. Natural gas is expected to be a transition fuel, displacing coal and oil as the world moves toward renewable power.

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