This 7 Percent Dividend Stock is My Top Pick for Immediate Income

Looking for a solid dividend stock that can provide an immediate income source? Consider this dividend gem now while its still discounted.

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Some of the best long-term stocks can provide a juicy dividend for decades. Even better, some of those stocks can provide an immediate income stream for investors.

Let’s take a quick look at one stock that can provide an immediate income, Enbridge (TSX:ENB).

Meet Enbridge – the one stock you need to buy now

For those who are unfamiliar with Enbridge, the company is an energy infrastructure behemoth. Enbridge generates the bulk of its revenue from its lucrative pipeline business, but also operates several other segments.

That pipeline segment hauls a massive amount of crude and natural gas. In short, Enbridge hauls nearly one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market.

More importantly, the revenue generated from those pipeline networks is not impacted by market volatility or the price of commodities.

In other words, Enbridge is an incredibly defensive option to consider buying now to generate an immediate income.

And that’s not all. Enbridge also operates one of the largest utilities in North America and a growing renewable energy portfolio. That renewable energy portfolio comprises over 40 facilities located in Europe and North America.

Enbridge has also invested over $8 billion into the segment over the past two decades, which includes wind, solar, and geothermal elements. The segment generates over 2,100 MW net capacity, which is enough to power over 960,000 homes.

Generate a juicy, immediate income

One of the main reasons why Enbridge attracts investors is for its very appetizing dividend. As of the time of writing, Enbridge offers a quarterly dividend with a yield of 7.63%. This makes Enbridge one of the better-paying dividend stocks on the market.

It also means that investors who can invest $25,000 in the stock today can expect an immediate income of over $1,900 in the first year alone.

Even better, investors who aren’t ready to draw on that income yet can choose to reinvest those dividends until needed. It’s also worth noting that Enbridge has provided an annual uptick to that juicy dividend for nearly three decades without fail.

And one final reason to consider Enbridge is timing. Despite its significant appeal, the stock trades down 12% year to date, making it a discounted must-have for any long-term investor.

Final thoughts

All investments, even the most defensive, come with some risk. That’s part of the reason why the importance of diversifying your portfolio cannot be understated. Fortunately, Enbridge offers some defensive appeal that is coupled with strong growth and a juicy income.

In my opinion, Enbridge is a great long-term investment for your well-diversified portfolio. Not only will it generate an immediate income stream, but it will provide years of growth, too.

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 Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

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