1 High-Yield Dividend Stock You Can Buy and Hold Forever

There are some stocks you can buy and hold forever. Here’s one top pick that won’t disappoint investors anytime soon.

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One of the benefits of investing early on is establishing a portfolio of stocks that you can buy and hold forever. These buy-and-forget stocks can provide a growing source of income that lasts decades, all thanks to the magic of reinvestments.

And while there’s no shortage of options to consider on the market right now, there is one high-yield dividend stock you really can buy and hold forever.

Here’s a stock you can buy and hold forever

The stock that investors can buy and hold forever is Enbridge (TSX: ENB). The energy infrastructure titan operates in multiple defensive segments that make it a must-have investment for every investor.

That list includes operating the largest and most complex pipeline network on the planet. Enbridge’s pipeline business includes both crude and natural gas elements that provide a whopping one-fifth of the natural gas needs of the U.S. market. Turning to crude, Enbridge hauls nearly one-third of all North American-produced crude.

That fact alone makes Enbridge one of the most defensive investments on the market, and that’s not even the best part.

Enbridge charges for using that pipeline network, but not by the price of the commodity being hauled. In other words, Enbridge still generates a reliable revenue stream from its pipeline operations irrespective of the volatile price of oil.

Keep in mind that it’s that pipeline segment which generates the bulk of Enbridge’s revenue.

In addition to that defensive pipeline network, Enbridge also operates another very defensive segment, a natural gas utility. In fact, that utility segment comprises the largest natural gas utility in North America, boasting seven million customers.

Like its pipeline business, utilities generate a reliable, regulated stream of recurring revenue, adding to that already impressive defensive appeal.

That may be reason enough for investors to see Enbridge stock as something they can buy and hold forever, but there’s still more.

Enbridge isn’t just oil

Enbridge is frequently associated with big oil, but there’s another growing segment of the company that prospective investors should consider.

Enbridge operates one of the largest renewable energy portfolios in Canada. The company has invested over $9 billion into renewables in the past two decades.

Today, that investment comprises a network of over 40 facilities across North America and Europe. Additionally, those facilities are diversified across several elements, including wind and solar facilities. Those facilities generate enough to meet the energy needs of approximately 1.1 million households.

Another key point to consider is the defensive appeal of renewable energy. Apart from the growing importance of renewables, the facilities are bound by long-term regulated contracts just like their fossil fuel peers.

This means those facilities generate a stable and recurring revenue stream that spans decades. That translates into plenty of opportunities to invest in growth and pay out a very handsome dividend.

Did someone say dividend?

Enbridge pays out a quarterly dividend to investors and has done so for decades. Additionally, the company has an established precedent of providing an annual bump to that dividend which goes back three decades.

As of the time of writing, Enbridge’s dividend pays out an insane yield of 7.84%.

To put that into perspective, let’s consider an investment of $30,000. Investors can expect to generate an income of just over $2,300 for that initial outlay.

Keep in mind that investors who aren’t ready to draw on that income yet can choose to reinvest it, allowing it to grow further. That’s reason enough for investors who can buy and hold forever to jump on Enbridge stock now.

Oh, and one final factor is Enbridge’s stock price. As of the time of writing, Enbridge trades down 11% over the trailing 12-month period.

This makes it an excellent time to pick up the stock at a discount. In my opinion, Enbridge is one of the few stocks you can buy and hold forever.

Buy it, hold it, and watch it grow.

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

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