Passive Income: How to Earn $30/Day While You Sleep

The global pandemic somehow changed people’s view about investing. However, with the expected inflationary environment in 2022, it becomes all the more necessary to have a financial cushion. Most Canadians with savings or free cash take the simplest route to earn passive income.

Dividend stocks provide impressive income streams, usually every quarter. However, if you want to earn while you sleep, Enbridge (TSX: ENB)(NYSE: ENB) is the logical choice.

TSX’s top-tier energy stock is a generous dividend payer. At its current yield of 7.06%, a $152,500 investment will produce $10,766.50 in passive income or nearly $30 per day. Also, if you’re investing for the long term, any investment amount will double in 10.19 years.

Superior shareholder value

The $97.41 billion energy infrastructure company’s enticement is its low-risk business model. Enbridge president and CEO Al Monaco said, “Over the decades, Enbridge has delivered superior shareholder value. Our low-risk business model has resulted in strong and consistent growth in the dividend which we are continuing to deliver.”

In the last 46 years, the energy stock’s total return is 47,164.70% (14.32% CAGR). Current investors enjoy a 28.25% year-to-date gain on top of the ultra-high dividends. Management says the 10% CAGR of the common shares over 26 years demonstrate its commitment to return capital to shareholders consistently.

Opportunities for future organic growth

Enbridge has earned its moat from its four best-in-class infrastructure franchises. Besides longevity, the cash flows are resilient. The diversified asset base consists of liquids pipelines (53%), gas transmission (29%), gas distribution & storage (13%), and renewable power (5%). All franchises have significant opportunities for future organic growth.  

The business is essential, because its fuels North America’s economy. Enbridge move nearly 25% of the crude oil produced in the region and is the third-largest natural gas utility by customer count. Moreover, it transports almost 20% of the United States’ natural gas consumption. Enbridge’s renewable energy assets (operating and under construction) are growing.

Drive towards clean energy

Monaco said, “At Enbridge, we’re strengthening our connections to global markets and transitioning our energy mix towards lower-carbon solutions.” Management recently established a dedicated New Energies Team to advance its low-carbon energy infrastructure opportunities across Enbridge’s four energy delivery platforms.

Four French offshore wind projects (1.4 GW) are under construction. In Q3 2021, Enbridge commissioned an industrial scale green hydrogen blending facility to inject hydrogen into the natural gas stream for Enbridge Gas utility customers. The company and Vanguard Renewables will build up to eight renewable natural gas (RNG) facilities in the U.S. along Enbridge’s gas transmission systems.

Enbridge signed a memorandum of understanding with Shell to develop low-carbon energy solutions focused on hydrogen, renewables, and carbon capture in North America. Monaco added, “Our objective is to be a differentiated energy infrastructure service provider for our customers by leading our industry on environmental, social2 and governance performance.”

Strategic priorities

Enbridge’s strong operational and financial results in Q3 2021 is proof of its low-risk business model’s ability to generate predictable results. Management assures investors that its strategic priorities are unchanging. Enbridge will drive solid cash flow growth and per-share results. Invest in this energy stock now to build wealth while sleeping.