If you are into stocks, you might be a short-term investor, frequently trading shares. Or you might be in the long-term game, holding valuable assets for years and years to watch them grow. If that’s the case, it’s very likely that you are a fan of dividend stocks.
Dividend stocks are ideal for people who want to hold their shares for a long time while simultaneously receiving a consistent income through dividend payouts. Reinvesting in those stocks is a smart way to build a giant nest egg for later. If that seems like your cup of tea, Enbridge (TSX:ENB)(NYSE:ENB) and Granite REIT (TSX:GRT.UN) should be on your radar.
An energy leader
Enbridge has established itself as one of the leaders in the energy industry. The company is responsible for transporting nearly two-thirds of the country’s crude oil exports and 20% of the natural gas to the U.S. Enbridge also branched out to renewable energy early in the game and currently maintains a significant foreign presence.
With the company’s Line 3 project on the way, the prospects look bright, especially after the dismal year for the whole sector. The company is currently trading at $47.83 per share, about 16% more than it did at the same time last year.
For a dividend stock investor, this increased market value may only be the icing on the cake. The actual cake is a tasty yield of 6.17%. The company has a history of increasing its dividend for 19 consecutive years. In just the past five years, the company more than doubled the dividend payouts to its investors. A $100,000 investment can create a passive-income stream of $514/month.
With this kind of explosive dividend growth, investors can sit back and enjoy the increasing payouts as well as growing capital gains.
A solid REIT
With a market cap of $3.17 billion, Granite REIT tends to flow under the radar of many investors. The company owns 90 properties in nine countries, totaling an area of more than 34 million square feet. Most of these are industrial, logistics, and warehouse properties. About 60% of these properties are in Canada and the U.S., while the rest are in North American countries and Europe.
With such a safe and diversified portfolio, the company has seen fantastic growth. In the last five years, the market value of the company has risen more than 60%. If you had invested $10,000 in the company five years back, your compound returns would now be $19,000.
The company would have increased your capital gains by a significant amount while paying you increasing dividends for five consecutive years. The current dividend yield of the company is a decent 4.37%. Granite REIT is trading at a monthly low of $64.02 at the time of writing. This price per share might indicate a great time to buy into this fast-growing dividend stock.
Dividend stocks are prized for their consistent payouts. Whether they are monthly or quarterly, they make a dependable passive-income stream. This is the reason why people who prefer safe investments go for Dividend Aristocrats. If you are looking for companies that will pay and grow your dividend payouts, Enbridge and Granite REIT should stand out to you.
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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge.