Finding the right mix of stocks today can make the difference between retiring early or working for several years longer. Fortunately, the market gives us plenty of options to consider to help meet that goal. This includes the following duo, which are some of the best stocks to buy right now.
This is, hands-down, one of the best stocks to buy right now
Most investors are familiar with Enbridge (TSX:ENB). That being said, few investors may realize just how good a stock Enbridge is for your portfolio.
Here’s a trio of factors that make Enbridge one of the best stocks to buy right now.
First, we have Enbridge’s reliability. The company operates the largest and most complex pipeline network on the planet. The company hauls massive amounts of crude and natural gas across that network.
Enbridge hauls so much, that its pipeline business represents one of the best defensive moats on the market. Specifically, we’re talking about one-third of North American-produced crude, and one-fifth of the natural gas needs of the U.S. market.
Next, we have Enbridge’s diversification appeal. Apart from its defensive (and lucrative) pipeline business, Enbridge also boasts several other noteworthy segments.
That includes a growing renewable energy business with over 40 facilities in Europe and North America that generates a recurring revenue stream. Another consideration is Enbridge’s natural gas utility, which is the largest on the continent.
In short, Enbridge is a well-diversified energy infrastructure behemoth that boasts one of the best defensive moats on the market.
Finally, let’s talk dividends. Enbridge offers investors a quarterly dividend that, as of the time of writing, carries an insane 7.70% yield. That handily makes Enbridge one of the best-paying dividends on the market.
That’s not all. Enbridge has provided annual upticks to that dividend for nearly three decades without fail. The company also plans to continue that practice over the next several years. That fact alone makes Enbridge one of the best stocks to buy right now, even if you just have $1,000 to start with.
What about a buy-and-forget stock?
One of the best yet often ignored facets of investing is the buy-and-forget stock. These are superb picks (like Enbridge above) that provide a juicy dividend that is recurring, stable, and growing.
Fortis (TSX:FTS) is a superb example of this and is one of the best stocks to buy right now. For those unfamiliar with the stock, Fortis is one of the largest utilities in North America.
Utilities generate a stable and recurring revenue stream thanks to their reliable business model. In short, utilities are bound by long-term regulated contracts for the services they provide. Many times, these contracts span multiple decades in duration, making them a safe and recurring source of revenue.
That also means utilities like Fortis can invest in growth and pay a generous yield.
In the case of Fortis, the current yield works out to an appetizing 4.38%. This makes it an appealing option for all investors to consider, even those with just $1,000 to start with.
Even better, Fortis has provided annual upticks to that dividend for an incredible 50 consecutive years without fail. This qualifies Fortis as one of only two stocks in Canada with the Dividend King title.
That level of stability makes Fortis one of the best stocks to buy right now, but it is also good for long-term investors looking for that buy-and-forget option.
Final thoughts
No investment is truly without some risk, and that includes even defensive-oriented Enbridge and Fortis. In fact, we’ve seen both stocks drop over the trailing 12-month period by 12% and 3%, respectively.
In my opinion, both Fortis and Enbridge are some of the best stocks to buy right now, even at a discount for any well-diversified portfolio.
