Retiring wealthy is the aspiration of many and a dream come true to others. The goal is feasible if you’re up to the task of investing your hard-earned money in a company that has the potential to bring you to your destination.
Energy behemoth Enbridge (TSX:ENB)(NYSE:ENB) can help anyone build wealth and eventually live in pomp during the sunset years. With more than a decade history of paying dividends, this energy stock is a must-own, buy-and-hold asset.
Industry and stock market prominence
In the oil and gas midstream industry, Enbridge stands out as the top choice. Aside from being the most popular energy stock on the TSX, it’s North America’s largest energy infrastructure company as well as Canada’s largest natural gas distributor.
On top of its industry prominence, Enbridge is a Canadian Dividend Aristocrat. This $103.75 billion multinational firm has a dividend growth streak of 24 years and a 16.33% dividend growth rate (DGR) over the last five years.
The stock currently pays a 5.82% dividend. If you’re in your twenties and you want to retire rich someday, Enbridge is your ticket.
At the given yield, the value of an $185,000 investment today will be nearly $1,010,000 in 30 years. The investment period is quite long, although it’s the only path you can save yourself to wealth.
Second to none in oil and gas midstream
Enbridge plays a crucial role in the energy sector. The company is mainly responsible for transporting, distributing, and generating energy.
It owns the largest natural gas distribution network in Canada and the most extended crude oil and liquid hydrocarbons transportation system in North America — a customer base that numbers 3.7 million is in New Brunswick, Ontario, Quebec, and New York.
Enbridge’s 192,000 miles of natural gas and NGL pipelines extends across North America up to the Gulf of Mexico. About 17,000 miles of active pipelines comprise its crude oil and liquids transportation systems. Also, the company is celebrated because of its high-quality liquids and natural gas infrastructure assets.
Business at hand
The operating and financial results as of the third quarter ended September 30, 2019, made investors happy as usual. The stellar outcome shows the quality and predictability of Enbridge’s business model.
All of its five reporting segments are turning in impressive numbers. The Liquids Pipelines contributes more than 50% to total earnings followed by Gas transmission and midstream, Gas Distribution, Green Power and Transmission, and Energy Services. As far as green power, Enbridge has interests in 3,000 MW of renewable generation capacity.
Highly transparent growth
While some growth projects will come into service this year, the outlook is stirring in the near and medium term. Enbridge will be advancing its $19 billion of secured growth capital program. Of this total, the $2.5 billion secured projects year-to-date will drive growth.
Finally, Enbridge is a safe investment as each of the projects is supported by long-term take-or-pay contracts, cost-of-service frameworks or comparable low-risk commercial agreements.
The road to richness will be bumpy and sometimes jarring. As Enbridge is your core holding, you’ll reach your goal unscathed. But to attain your dream, the quest should begin today.
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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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. Enbridge is a recommendation of Stock Advisor Canada.