Enbridge Stock: Keep Your Eye on the Prize

Want a stellar long-term investment you can buy and hold for a decade? Keep your eye on the prize as this stock offers all that and more.

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One of the key tenets of every investor is to establish a well-diversified portfolio. Part of that is picking the right investments. Stockpicking can be a daunting task for new investors, but fortunately, there are some great investments to help keep your eye on the prize.

Here’s a stellar investment to consider buying today to keep your eye on the prize.

Enbridge is the investment to look at right now

Most investors are familiar with Enbridge (TSX: ENB), but few realize just how much the energy infrastructure stock can offer.

Enbridge is best known for its massive pipeline network. Its network is the largest and most complex pipeline system on the planet.

Across both its crude and natural gas segments, Enbridge hauls massive amounts of crude and natural gas. Specifically, that works out to one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market.

In other words, the pipeline segment helps to make Enbridge one of the most defensive options on the market. Apart from generating the bulk of its revenue from that segment, there are other reasons to be keen on ENB stock. As with all things Enbridge, there’s more to love, so keep your eye on the prize.

Enbridge also operates a growing natural gas utility. This adds to the overall defensive appeal of the stock but also highlights Enbridge’s massive growth potential.

Just last month, Enbridge announced a strategic acquisition that adds to its natural gas segment comprising three U.S.-based companies. The deal includes the East Ohio Gas Company, Utah-based Questar Gas, and PSNC in North Carolina.

Collectively, this adds three million new customers to Enbridge’s already sprawling utility business, making it the largest natural gas utility on the continent. That just screams defensive appeal and long-term growth potential, but again, keep your eye on the prize.

Enbridge is getting cleaner

In addition to its growing utility and lucrative pipeline segments, Enbridge also operates a growing renewable energy business. Specifically, Enbridge has invested over $8 billion into renewable energy over the past two decades.

Today, that investment includes wind, solar and geothermal facilities across North America and Europe. In total, those green energy assets have a net generating capacity of over 2,100 MW. That’s enough to meet the power needs of over 960,000 homes.

The growing need for renewable energy cannot be understated, and Enbridge’s continued investment in the sector provides yet another long-term growth driver.

Investors: Keep your eye on the prize

Perhaps one of the biggest reasons why investors continue to flock to Enbridge is for the juicy dividend that it offers. Enbridge offers investors a quarterly dividend, which as of the time of writing works out to a very appetizing 7.94%.

For those investors that drop a cool $30,000 into Enbridge (as part of a well-diversified portfolio), they can expect an income of over $2,300.

Even better, prospective investors with long-term timelines can opt to reinvest that income until needed. This will provide a significant boost to any eventual income once it’s needed.

Finally, investors should note that Enbridge has provided an annual uptick to that dividend for nearly three decades without fail.

Final thoughts

Despite its reliable, diversified business, strong growth prospects and juicy yield, Enbridge trades at a discount right now.

Year to date, the stock is down 14%. Investors, keep your eye on the prize. In my opinion, it’s an ideal time to pick up a great long-term stock at a great discount.

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

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