Finding that perfect mix of stocks that pay handsome rewards is a must-have for every investor. Fortunately, there’s no shortage of dividend stocks on the market that can provide a juicy income for decades.
Here are two compelling options to consider for adding to your portfolio.
How about a growth-focused defensive stock with a 7% yield?
Let’s start with Enbridge (TSX:ENB). The energy infrastructure behemoth is a familiar investment to seasoned investors. But the appeal of Enbridge extends far beyond its utility and pipeline business.
Speaking of the pipeline business, prospective investors should note that the segment generates the bulk of its revenue from that segment. And the defensive appeal of the segment is off the scale. Specifically, Enbridge transports nearly one-third of the crude produced in North America and one-fifth of the natural gas needs of the U.S.
If that’s not enough, Enbridge charges for the use of that lucrative network and not based on the price of volatile commodities. And that’s not even the best part.
Enbridge also operates one of the largest natural gas utilities on the continent and has a growing portfolio of renewable energy facilities in Europe and North America.
Turning to income, Enbridge offers an insane 7.15% yield paid out on a quarterly basis. The company has also provided annual upticks to that dividend for nearly three decades without fail. That factor alone makes Enbridge one of the maple leaf dividend stocks that pay handsome rewards to investors.
Buy now and watch your income grow
Canada’s big banks are superb options for income-seeking investors. Bank of Montreal (TSX:BMO) is unique among its peers,
BMO isn’t the largest of the big banks, but it is the oldest of the big banks and offers a juicy quarterly dividend. As of the time of writing, the yield on that dividend works out to a respectable 4.76%.
BMO has been paying out dividends for nearly two centuries without fail. The bank has also provided annual upticks to that dividend, with only a few notable exceptions, such as during the pandemic.
Interestingly, BMO isn’t just an income stock. BMO is also a great growth pick. Earlier this year, the bank completed its US$16.3 billion acquisition of Bank of the West. The deal added hundreds of new branches to BMO’s growing U.S. network as well as 1.8 million new customers.
As a result of the deal, BMO now has a presence in 32 state markets, including the lucrative Californian market.
These stocks pay handsome rewards, but will you buy them?
Both BMO and Enbridge are superb long-term options that offer a growing dividend as well as long-term growth potential. Additionally, they both offer some defensive appeal within their respective areas.
In my opinion, one or both stocks pay handsome rewards to investors and should be core holdings in any large, well-diversified portfolio.
