My Top No-Brainer, High-Yield Dividend Stock to Buy for 2024

Are you looking for some dividend stocks to buy in 2024? Here’s a high-yielding Canadian Dividend Aristocrat to keep on your radar trading at a substantial discount.

| More on:
Increasing yield

Image source: Getty Images

Successful stock market investing is not always about buying incredibly high-growth businesses at low prices and selling when high. Granted, the approach can make for some quick profits. However, it entails considerable risk to your investment capital in unfavourable market conditions.

Identifying and investing in high-quality dividend stocks can be a much better way to build wealth by putting your money to work in the market.

Due to the broader market pullback, several top-notch dividend stocks trade at heavily discounted share prices. Due to the downturn, the dividend yields of several top dividend stocks have become inflated to unbelievably attractive levels. That said, not every high-yielding dividend stock is a good investment.

The underlying business must be fundamentally strong enough to sustain high-yielding dividends for a long time to make it a viable investment. Today, we will look closely at a Canadian Dividend Aristocrat you can consider for this purpose: Enbridge (TSX:ENB).

Enbridge

Even if you have been a stock market investor in Canada for a short time, you might be aware of what Enbridge is and does, even partially. Enbridge is a $101.20 billion market capitalization giant in the Canadian energy industry. Most investors know it best for its extensive pipeline network. However, there is more to this energy company than meets the eye.

Enbridge indeed has the largest pipeline network in North America. The company’s infrastructure is responsible for transporting approximately a third of all the hydrocarbons produced in North America. Additionally, it transports a fifth of all the natural gas that the U.S. consumes.

The company’s revenues do not rely on volatile commodity prices. Rather, the company charges other energy producers based on the volume it transports. This way, the company’s pipeline network generates steady and relatively more stable revenue, owing to a growing demand. When it comes to the energy industry, this business model makes Enbridge a top defensive pick.

Besides an exciting traditional energy business, Enbridge also operates North America’s largest natural gas utility business. The company recently announced a few new acquisitions that have further bolstered this business segment, solidifying the defensive appeal for this dividend-paying stock.

Preparing for a greener energy industry

For a dividend stock to be a truly effective long-term investment for wealth growth, it must have the potential to grow shareholder value for years to come.

With climate change becoming increasingly worrisome, world governments are phasing out traditional energy and shifting to cleaner energy sources. This is where the company’s foray into the renewable energy industry solidifies its place as a no-brainer pick for many investors.

Enbridge stock has invested over $8 billion over the last 20 years to grow this business segment. As of this year, it has over 40 renewable energy sites diversified across North America and Europe, boasting a 2,100-megawatt net generating capacity. With further growth for this segment in the coming decades, Enbridge is setting itself up for a thriving future in a greener energy industry.

Foolish takeaway

Besides its growth prospects and defensive qualities, being a reliable dividend stock makes Enbridge an attractive pick. As of this writing, Enbridge stock trades for $47.61 per share, paying its investors quarterly distributions at a juicy 7.69% dividend yield. Enbridge stock is a Canadian Dividend Aristocrat that has raised its shareholder dividends for the last 27 consecutive years.

Year to date, Enbridge stock is down by 10.73%. However, the business is fundamentally strong. Instead of focusing on short-term challenges, it might be better to keep a long-term view.

Looking at Enbridge stock from this perspective makes it too attractive a stock to ignore. Between high-yielding dividends and immense long-term growth potential, it can be an excellent addition to your self-directed portfolio for 2024 and beyond.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

RRSP Ready: 2 Stellar Stocks for Your Annual Contribution

Two high-yield stocks are ideal options if you plan to maximize your annual RRSP contribution limits and reduce taxable income.

Read more »

grow dividends
Dividend Stocks

3 Stocks That Could Be Easy Wealth Builders

Long-term investors would be wise to have these three Canadian stocks on their radar.

Read more »

question marks written reminders tickets
Dividend Stocks

Dividend Investors: Is BCE Stock a Buy Now?

BCE now offers a 7.9% dividend yield.

Read more »

edit Taxes CRA
Dividend Stocks

CRA Money: 2 More Days to Boost Your Tax Refund!

Dividend stocks like Toronto-Dominion Bank (TSX:TD) can be great RRSP holdings.

Read more »

grow money, wealth build
Dividend Stocks

3 TSX Dividend Stocks With Yields Above 7% (But Are They Safe?)

These three dividend stocks all have ultra-high yields, making them some of the best to buy if you're looking to…

Read more »

Light bulb with jester hat perched on top
Dividend Stocks

3 Canadian Dividend Stocks With Payouts That Are No Joke 

Here are three top Canadian dividend stocks long-term investors would be remiss to ignore, particularly at these current valuations.

Read more »

clock time
Dividend Stocks

Is it Too Late to Buy These 3 Brilliant Passive Income Stocks?         

TD Bank stock is just one of three stocks that are well positioned to continue to provide passive income for…

Read more »

rail train
Dividend Stocks

Canadian National Railway Stock: Buy, Sell, or Hold?

Railways like Canadian National Railway (TSX:CNR) are great long-term options. But is now the time to buy Canadian National Railway…

Read more »