The Canadian regulator has just approved its tariff policy for the next five years. This should ensure remarkably stable cash flows over the period.

Enbridge's network is by far the largest and densest connecting the production basins of western Canada with the Midwest and eastern regions of the American continent.

Irreplaceable and non-reproducible, this strategic infrastructure complements that of TC Energy, which runs south from Canada, and the Trans Mountain project, which serves British Columbia.

With the boom in liquefied natural gas opening up new export markets, and hydrocarbon production in Canada on the rise structurally - despite the Trudeau government's cuts - the next few years are shaping up to be very promising.

These developments come at just the right time for Enbridge, which is completing a ten-year cycle marked by $70 billion invested in its infrastructure. These investments have quadrupled the Group's annual cash flow.

Earnings per share, on the other hand, have tended to stagnate for years. The high payout ratio has also forced the Group to increase its debt to significantly high levels.

Notwithstanding the reduced room for manœuvre afforded by this financial leverage, the 7.5% yield is not unattractive against a backdrop of 4% ten-year bond yields. A fall in interest rates would make it even more attractive.

Conversely, a rise in rates caused by a tighter monetary policy - motivated, for example, by persistent inflation - would lead to a sharp compression in valuation.