The US stock market continues to scream higher.

Investors looking for good deals on quality stocks could become frustrated by this.

But you should keep two things in mind.

First, the US stock market is almost certainly headed higher in the long run, making current prices look cheap in the future.

Second, there are deals in every market.

I’m sure there was a time, many years ago, when the Dow Jones Industrial Average was at 5,000 points, where investors were complaining about expensive stocks.

Yet how much would you love to see stocks so lowly priced now?

But we can’t travel back in time.

So it’s more worthwhile to focus on where businesses are going over the long run.

This is something I’ve always tried to keep in mind as an investor.

Enbridge Inc. (ENB) is an energy distribution and transportation company that owns and operates crude and natural gas pipelines across the United States and Canada. It also operates a gas utility business. Additionally, the company has considerable exposure to renewable energy through a diversified portfolio of renewable energy projects.

As it stands, Enbridge has increased its dividend for 25 consecutive years.

If that’s not impressive enough, the 10-year dividend growth rate is 11.3%.

But wait. There’s more.

That rather high dividend growth rate comes on top of the stock’s current yield of 7.27%.

This yield is more than four times higher than the broader market’s yield.

Enbridge grew its revenue from CAD $19.402 billion in FY 2011 to CAD $39.087 billion in FY 2020.

That’s a compound annual growth rate of 8.09%.

Moving over to the balance sheet, the company is in a good financial position.

The long-term debt/equity ratio is 1.02.

Enbridge has lowered its consolidated debt/EBITDA ratio from approximately 6 in 2016 to within a range of between 4.5 and 5.

Their credit ratings are in investment-grade territory: Standard & Poor’s rates their senior unsecured debt BBB+; Moody’s, Baa2; Fitch, BBB+.

Profitability is difficult to gauge. That’s because of the way profit is translated. GAAP numbers can be misleading or even meaningless.

With that said, over the last five years, the firm has averaged annual net margin of 6.53% and annual return on equity 6.99%.

Morningstar rates ENB as a 4-star stock, with a fair value estimate of $46.00.

CFRA is another professional analysis firm, and I like to compare my valuation opinion to theirs to see if I’m out of line.

They similarly rate stocks on a 1-5 star scale, with 1 star meaning a stock is a strong sell and 5 stars meaning a stock is a strong buy. 3 stars is a hold.

CFRA rates ENB as a 4-star “BUY”, with a 12-month target price of $45.00.

I came out high, surprisingly. Averaging the three numbers out gives us a final valuation of $49.29, which would indicate the stock is possibly 30% undervalued.

Bottom line: Enbridge Inc. (ENB) is a world-class infrastructure company. They have little exposure to volatile commodity pricing, and they’ve operated through the pandemic admirably. With a market-smashing 7%+ yield, double-digit dividend growth, 25 consecutive years of dividend raises, and the potential that shares are 30% undervalued, this is a great high-yield opportunity for long-term dividend growth investors willing to accept the risks.

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