There are few, if any stocks on the market today that represent such a lucrative opportunity for investors as Enbridge (TSX:ENB). Here’s a trio of reasons why you should buy Enbridge stock right now.
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First, there’s the stable Enbridge you do know
Most investors are aware of Enbridge. The energy infrastructure behemoth is well-known, primarily for its pipeline business and there’s a good reason for that.
That pipeline business, which includes both crude and natural gas segments, is the largest and most complex pipeline system on the planet. And more importantly, it hauls massive amounts of crude and natural gas.
Specifically, Enbridge transports one-third of all North American-produced crude, and one-fifth of the natural gas needs of the U.S. This makes Enbridge an incredibly defensive option for any long-term portfolio.
But most investors may not be aware of everything else that Enbridge does, which adds to the reasoning to buy Enbridge stock right now.
Second, don’t forget the growing parts of Enbridge
Apart from its lucrative pipeline business, Enbridge also operates a growing renewable energy business. Renewables are growing in importance and Enbridge has dropped over $10 billion into the segment over the past two decades.
Today Enbridge’s renewable footprint includes approximately 40 facilities located across North America and Europe. Those facilities include solar, wind, and hydro operations.
And like fossil fuel-burning utilities, those facilities are bound by long-term regulated contracts. This means that those facilities generate a reliable (and growing) source of revenue for Enbridge. That reliable revenue stream allows Enbridge to invest in growth and pay a generous dividend (more on that in a moment).
As lucrative as that renewable operation sounds, it’s not the only other segment that Enbridge has. The company also operates the largest natural gas utility in North America.
And like its renewable business, the natural gas utility, which boasts over 6 million customers across the U.S. and Canada, is incredibly defensive and growing. Just in the past year alone, Enbridge has completed a trio of acquisitions to bolster its utility operation.
Collectively, all of Enbridge’s segments with their massive growth potential make the company an intriguing option to consider. But for investors looking to buy Enbridge stock for income, there’s good news as well.
Finally, let’s talk about Enbridge’s tasty dividend
Prospective investors looking to buy Enbridge stock should note that the company also offers a very tasty quarterly dividend. As of the time of writing, the yield works out to an insane 7.5%, making it one of the highest-paying yields on the market.
This means that investors who buy Enbridge stock will be handsomely rewarded. By way of example, let’s consider a $40,000 investment (always as part of a larger, well-diversified portfolio). For that initial outlay, investors can expect to generate a healthy income just shy of $3,000.
But that’s not even the best part.
Enbridge has an established cadence of providing investors with a healthy annual bump to that dividend. That streak currently extends a whopping three decades, and Enbridge plans to continue that tradition.
This means that investors who buy Enbridge stock today but are not ready to draw on that income can reinvest it until needed. This will let any eventual income stream grow through reinvestments until needed.
Final thoughts: Will you buy Enbridge stock?
Enbridge is, in my opinion, a great long-term option that appeals to both growth and income-focused investors. Additionally, the company offers one of the tastiest yields on the market, and it continues to grow.
In other words, buy it, hold it, and watch it grow to form a part of your well-diversified portfolio.
