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3 Long-Term Investments With Insane Income-Earning Potential

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For most investors, the ultimate investment is one that can be made today and be left alone to grow on autopilot for decades. Apart from growth, income-earning potential ranks high on that list, as today’s reinvested dividends can form the basis of tomorrow’s monthly or quarterly dividend payout.

But where do investors start? There’s no shortage of intriguing investment options on the market, many of which have appetizing dividends on offer. Fortunately, that’s where these three stocks come into play as the incredible long-term gems that they really are.

Take the passive fast track 

Pipelines represent one of the most lucrative business models available. From the recurring and stable nature of transporting oil and gas to the dire need for additional pipelines to connect Canada’s oil-rich regions to refineries in the U.S., pipeline investments can be viable investment options for any portfolio.

Enbridge (TSX:ENB)(NYSE:ENB) should be near the top of any pipeline investment wish list. Enbridge operates one of the largest pipeline networks in the world, hauling more than half of all Canadian crude bound for U.S. markets.

In the most recent quarter, that pipeline network transported 2.7 million barrels per day, surpassing the prior period by a whopping 100,000 barrels per day. Adjusted earnings from the quarter amounted to $1.64 billion, or $0.81 per share.

In terms of a dividend, Enbridge offers investors a tasty 6.24% yield, handily making the company an excellent long-term option for income seekers.

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All aboard to riches

For some investors, a railroad might not seem like an ideal investment option in 2019, but Canadian National Railway (TSX:CNR)(NYSE:CNI) offers investors long-term growth and income-earning potential.

Railways haul a significant amount of freight, ranging from automotive parts, raw materials, crude oil, wheat, to a variety of finished products, to warehouses and ports across the continent. In the case of CN, Canada’s largest railroad hauls over $250 billion worth of goods every year.

In terms of results, CN is set to provide updated financials for the second fiscal of 2019 later this month. In the first quarter, the company saw revenues surge 11% to $3,544 million, while diluted earnings per share saw an 8% uptick to $1.08 over the prior quarter.

CN currently provides a 1.78% yield, which has seen consistent annual upticks spanning over a decade. The most recent uptick to the dividend was applied earlier this year.

Don’t miss out on this telecom

BCE (TSX:BCE)(NYSE:BCE) is a name recognizable to most Canadians, thanks to the company’s massive media and telecommunications empire that stretches from coast to coast. BCE’s traditional core subscription services have also been augmented in recent years by newer additions such as home monitoring and security through its AlartmForce acquisition.

Despite that push to new segments, BCE’s wireless segment remains the real growth-driving reason to invest in the stock. Canadians are ditching their landlines in increasing numbers while increasing their data limits on their mobile devices. In fact, with each new upgrade cycle, many of us are doubling the amount of data we consume every two years.

By way of example, in the most recent quarter, BCE reported 50,000 new postpaid subscribers to its wireless segment, leading to higher revenue per user of 4.5% while also witnessing growth in revenue and EBITDA. In the case of EBITDA, the company’s 6.9% growth year over year represented an incredible 54th quarter of year-over-year EBITDA growth.

In terms of a dividend, BCE offers a quarterly distribution that provides an appetizing 5.29% yield.

Are these stocks in your portfolio?

Not only do the three investments outlined above offer long-term growth and income-earning potential, but they all have stable business models that should help provide decades of uninterrupted growth potential. In short, buy them, hold them, and get rich.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of Canadian National Railway and Enbridge. Canadian National Railway and Enbridge are recommendations of Stock Advisor Canada.

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