There are few investments on the market today that can provide a handsome income and offer massive long-term growth potential. One exception to that is Enbridge (TSX:ENB), and here’s why you may want to buy Enbridge stock right now.
Reason #1: A defensive, lucrative, yet stable revenue stream
Enbridge is best known for its lucrative pipeline segment, and there’s a good reason for that. Apart from generating the bulk of its revenue from its crude and natural gas pipeline networks, Enbridge hauls massive amounts of oil and gas.
Specifically, Enbridge transports nearly one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market. That fact handily makes Enbridge one of the most defensive options on the market.
Impressive as it is, that’s not the only reason to buy Enbridge stock now.
Reason #2: Enbridge is more than oil and gas pipelines
While Enbridge is best known for its pipeline business, that’s not the only thing that this energy infrastructure behemoth offers investors.
Specifically, Enbridge also boasts a growing renewable energy portfolio. Enbridge has invested over $8 billion into the segment over the past two decades. Today, that portfolio comprises over 40 facilities located across North America and Europe. And like traditional utilities, that segment is bound by long-term regulated contracts that provide a steady stream of revenue.
Speaking of utilities, Enbridge also operates the largest natural gas utility in North America, with nearly seven million customers.
That unique mix may be reason enough for some investors to buy Enbridge stock, but there’s still more.
Reason #3: That juicy income
One of the main reasons why investors continue to flock to Enbridge is for the company’s dividend. Enbridge offers investors a juicy quarterly dividend, which, as of the time of writing, offers an insane 7.42% yield.
That easily makes Enbridge one of the better-paying dividend stocks on the market. By extension, it also means that investors who drop $30,000 into an Enbridge investment (as part of a larger diversified portfolio) can expect to earn over $2,200.
Even better, investors who aren’t ready to draw on that income yet can opt to reinvest those dividends, allowing them to grow further.
And speaking of growth, Enbridge provides investors with an annual bump to that yield. The company has continued that tradition without fail for nearly three decades.
Buy Enbridge stock now
Despite the massive appeal that Enbridge boasts, the stock trades down over 10% over the trailing 12-month period. In other words, it’s a superb time to buy the stock at a discount.
In my opinion, Enbridge is an excellent long-term stock that should be a core holding in any well-diversified portfolio.
