Some of the best investments to own are those that can offer a substantial income and long-term potential. Fortunately, the market gives us plenty of options to consider, including some investments that you really won’t mind holding for decades.
Here’s a look at one such option that should be a must-have for every investor.
Have you considered Enbridge lately?
Enbridge (TSX:ENB) is a name that should be familiar to most investors. For those that are unfamiliar with the company, Enbridge is one of the largest energy infrastructure companies on the planet.
The company is best known for its pipeline network, and for good reason, too. That pipeline network, which includes both crude oil and natural gas elements, is the largest and most complex pipeline system in the world.
That pipeline network accounts for the bulk of Enbridge’s revenue stream, which is thanks to the immense size and volume being hauled. To put that number into perspective, Enbridge hauls nearly one-third of all North American-produced crude, and nearly one-fifth of the natural gas needs of the U.S. market across its network.
And perhaps best of all, Enbridge does not generate that revenue based on the volatile price of the commodity being hauled. That factor alone makes it an appealing option to buy Enbridge today and hold for decades, but there’s still more.
Enbridge is evolving and growing
In addition to its well-known pipeline operation, Enbridge also operates one of the largest utilities on the continent. Utilities are incredibly defensive operations that are largely immune to market volatility. They also provide the company with a stable and recurring revenue stream.
But that’s still not the best part about Enbridge.
Few investors may realize this, but Enbridge also boasts a growing renewable energy business. Over the past two decades, Enbridge has invested over $8 billion into the segment, establishing a portfolio of facilities.
Those facilities primarily include wind, solar, and geothermal elements. Collectively, they work out to a network of over 40 sites located across Europe and North America. In total, those facilities have a net generating capacity of over 2,100 megawatts. In case you’re wondering, that’s enough to power over 960,000 homes.
And like Enbridge’s pipeline network, revenue from that growing renewable energy business is recurring and stable. More importantly, the segment is growing and shifting the company slowly towards renewables.
What about that dividend?
One of the main reasons why investors continue to flock to Enbridge is its juicy dividend. Enbridge offers investors a quarterly dividend, which works out to a very appetizing 7.41% yield.
Not only does this make Enbridge one of the better-paying options on the market, but it also means that investors who buy today can consider holding for decades.
And that’s not all. Enbridge provides investors with a generous annual uptick to that dividend. The company has also continued that practice of annual bumps without fail for nearly three decades.
Buying Enbridge today and holding for decades makes sense
No investment is without some risk, and that includes Enbridge. Fortunately, Enbridge is well diversified, provides a necessary service, and continues to invest in growth while paying out a juicy yield.
In my opinion, Enbridge remains one of the best long-term options on the market today. Investors that buy Enbridge today should have no issue holding for decades and watching their investment grow.
