Finding that perfect mix of income-producing stocks today can help secure a long-standing and stable retirement income stream tomorrow. There’s no shortage of income producers to pick, but there is one high-yield dividend stock to buy in 2023.
And that high-yield dividend stock to buy in 2023 is Enbridge (TSX:ENB).
Meet Enbridge – and all its parts
Most investors are familiar with some part of what Enbridge does. The energy infrastructure behemoth is best known for its massive pipeline network, but the company does much more.
That pipeline network is the largest and most complex system on the planet. It’s also responsible for hauling one-third of all North American-produced crude, and one-fifth of U.S. natural gas needs.
More importantly, Enbridge does not charge for the use of that network based on the volatile price of commodities. Instead, the pipeline generates a stable revenue stream backed by stable (and growing) demand.
This makes Enbridge one of the most defensive options on the market for investors. It also makes it a no-brainer, high-yield dividend stock to buy in 2023 (more on that dividend in a bit).
Beyond its lucrative pipeline business, Enbridge also operates the largest gas utility business in North America. The segment boasts a whopping 7 million customers and continues to see strong growth.
In fact, last month Enbridge announced a trio of new acquisitions to the segment from Dominion Energy Inc. That list includes Ohio-based East Ohio Gas Company, Questar Gas – which has operations in Utah, Wyoming and Idaho – and North Carolina-based PSNC.
In short, saying Enbridge is an incredibly defensive option for any portfolio would be a massive understatement.
There’s also something new and renewable to offer
Incredibly, Enbridge offers more. Outside the utility and pipeline business, there’s another reason why Enbridge is a no-brainer, high-yield dividend stock to buy in 2023.
And that opportunity stems from the company’s growing renewable energy business.
Over the past two decades, Enbridge has dropped over $8 billion into the segment. In addition to its operations in North America, Enbridge’s renewable arm also has a growing number of facilities in Europe.
Today Enbridge is one of the largest renewable energy operations in the country with a portfolio of over 40 sites. That list includes wind, solar and geothermal facilities among others. The portfolio boasts a net generating capacity of over 2,100MW, which is enough to meet the power needs of over 960,000 homes.
What makes Enbridge a high-yield dividend stock to buy in 2023
Enbridge wouldn’t be classed as a high-yield dividend stock to buy in 2023 if it wasn’t attractive to income seekers. And as with most things Enbridge, the company continues to impress.
As of the time of writing, Enbridge offers a quarterly dividend that carries an insane yield of 8.23%.
This means that investors with $20,000 invested in Enbridge (as part of a larger, well-diversified portfolio) can expect an income of over $1,630. Even better, long-term investors who aren’t ready to draw on that income just yet can opt to reinvest it, allowing it to grow until needed.
It’s also worth noting that Enbridge has provided investors with annual bumps to that dividend for nearly three decades without fail.
One of the reasons why Enbridge’s yield is high is because the stock has dropped a whopping 18% year to date. That drop can be traced back to several factors, including rising interest rates and market volatility.
Rather than focusing on the past, what investors should be focused on is the long-term opportunity. That’s something that Enbridge has plenty to offer, in the form of its existing business operation, growing utility business, and future renewable energy sector potential.
Throw in the juicy yield, and you have a no-brainer high-yield dividend stock to buy in 2023 that should be on every investor’s radar.
