Enbridge (TSX:ENB) has experienced a notable uptick, rising approximately 14% since early October 2023. With the current share price hovering around $49, investors are contemplating whether ENB stock remains undervalued and suitable for inclusion in a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio, particularly for those focused on passive income or total returns. 

The stock's journey saw a decline from its 2022 peak of $59, coinciding with a series of interest rate hikes by the Bank of Canada and the U.S. Federal Reserve to curb inflation. Rising interest rates led to concerns about increased borrowing costs impacting Enbridge's profits, as the company relies on debt for funding growth initiatives. 

However, the decline in share price might have been excessive, considering Enbridge's robust performance in 2023. Management anticipates a 3% growth in distributable cash flow (DCF) in 2024, excluding potential benefits from upcoming acquisitions. Enbridge is set to acquire three U.S. natural gas utilities for a total of US$14 billion, which is expected to positively impact revenue and cash flow. 

Additionally, the company added $7 billion in new projects to its capital program in 2023, increasing the backlog to $25 billion. As these projects come online, there is a potential for a boost in cash flow, supporting the dividend. 

Speaking of dividends, Enbridge raised its dividend by 3.1% for 2024, marking the 29th consecutive annual increase. The stock currently offers an annualized yield of 7.4%, making it an appealing choice for investors seeking reliable income. 

While ongoing volatility is expected until there is clear evidence of declining inflation and potential rate cuts, the recent rally suggests investors are betting on central banks reducing interest rates in 2024. If this scenario unfolds, ENB stock could continue its upward trajectory. However, any indications of rates remaining stable into 2025 might trigger a new pullback. 

Despite potential short-term turbulence, Enbridge appears attractive at its current price. The stock provides a generous yield, making it suitable for investors willing to weather market fluctuations. Pullbacks could be viewed as buying opportunities, and for investors with available cash, ENB stock deserves consideration for inclusion in their portfolios.