New Canadian investors should aim to invest for as long a horizon as they can. Undoubtedly, it’s tempting to trade various momentum stocks with the hopes of making a swift profit. That said, trading entails a great degree of risk for beginner investors, the extent of which self-guided (or DIY) investors may not fully understand.
Indeed, short-term investing and trading can be rather thrilling. But if it’s too thrilling, you may be at risk of taking just a bit too much risk. Indeed, it’s fine to learn through experience regarding the wild world of investing.
The case for keeping it boring (rather than exciting) with your investments!
However, I’d argue that it’s far better to stick with boring stocks that are cheap (even fairly valued) with long-term track records of sales and earnings appreciation. Indeed, you also need to find a firm that has a sizeable economic moat to ensure that disruptive forces don’t harm a firm’s ability to keep bringing in swelling amounts of cash flows. In this piece, we’ll focus on a stock that makes sense to hang onto for the extremely long term.
We’re talking 10-20 years at a time. Of course, when it comes to the investing game, it’s the “hold” part that’s the hardest, as you look to digest and interpret every quarterly earnings report and update that’s thrown your way. Remember, just because you aim to hold for a decade or more doesn’t mean you “tune out” and forget you own a stock. You must stay in the know and be able to adapt should circumstances change materially.
Oftentimes, economic fluctuations and near-term noise startle new investors out of a stock that some of the market’s more contrarian opportunists may pounce on. In this piece, we’ll check out a dividend stock that I think would make for a fantastic long-term hold, not just for its payout but its appreciation potential.
Enbridge stock: A dividend stock for the next decade and beyond!
Enter shares of pipeline darling Enbridge (TSX:ENB), which has been a choppy ride in recent years but now yields a fat 7.4%. Undoubtedly, it’s one of the most bountiful dividends out there, and, in many ways, it’s a gift for passive income investors that just keeps on giving. Looking ahead, I’d look for Enbridge to keep doing its best to power its comeback.
The pipeline firm is fresh off a pretty good first-quarter result that included reaffirmed full-year guidance. Though there’s bound to be a ton of volatility in the years ahead, I do like the price of admission and potential for upside surprises at some point down the road.
Sure, midstream energy may not be as exciting as an AI stock, but with such a glorious payout and one of the most investor-focused managers out there, I wouldn’t dare throw in the towel as it attempts to continue its rally off lows. At 18.7 times trailing price-to-earnings, ENB stock looks like a bargain among all the dividend stocks yielding more than 7%.
