It can certainly be said that Enbridge (TSX:ENB) was perhaps one of the best investments Canadians could have made over the years. The company had it all. A steady stream of revenue coming from across North America from its pipeline projects. A growing asset base as the company continued to expand these pipelines. All this growth fed into a growing share price, as well as a growing dividend.
But these days it’s a different story. Not only would I not recommend buying Enbridge stock, I would recommend avoiding oil and gas stocks all together, if I’m honest.
Let’s take a look at Enbridge stock
Enbridge stock had a pretty easy time in the last few decades of expansion. But in the last decade or so, things have become far more difficult. This is what happens when the world starts the shift towards renewable energy and away from the harmful effects of oil and gas stocks.
Enbridge, in particular, has been met with roadblocks again and again. Whether it’s red tape from politicians, or social and environmental activists, the company just doesn’t have the ability to create pipelines as quickly as it once promised.
So while there continues to be a backlog of projects for Enbridge stock, I would still argue it’s only a matter of time before the company shifts towards renewable energy completely. If it doesn’t, we’re going to continue seeing similar performance.
And that performance hasn’t been great. Not only are shares down 14% in the last year, but ENB remains at around the same share price of $50 per share that it has been at over the last decade. While it offers a substantial 7.03% dividend yield, that’s not much consolation over an unchanged share price.
Renewable is better
Renewable energy is better in every respect when it comes to investing. Sure, it’s better for the environment, and that should be taken into consideration. However, investors need to also think about their bottom line. And that’s why renewable energy is a much better choice.
This is a growing and expanding industry that’s already taking over around the world. After Russia invaded Ukraine, many European countries wanted out from under the gas giant. Now, government funds are being fuelled into creating their own energy resources.
The question is, though, which resource will be best? So if you’re going to invest in renewable energy, why not invest in something that covers all the bases.
There are a number of reasons to consider Brookfield Renewable Energy Partners LP (TSX:BEP.UN). First, there’s the wide range of assets it holds around the world. This is in every type of renewable energy, from nuclear reactors to wind farms.
Yet Brookfield stock is also backed by a company that has been involved in renewable energy since the 1800s. It’s merely a spin off of an already successful asset management company, and continues to grow from there.
What’s more, shares and dividends continue to rise. While there was a climb and dip after President Joe Biden came to office, overall it’s been a steady rise. Shares are down 7% in the last year, but up 173% in the last decade. Plus it comes with a stable 4.29% dividend yield.
So while Enbridge stock had a good run, along with the other oil and gas stocks, I would take a renewable stock like Brookfield any day.