Finding a passive-income stock with a generous yield can make all the difference between retiring with a juicy income or needing to work a few extra years. Fortunately, the market provides plenty of options to consider, including this TSX passive-income stock.
In case you’re wondering, that TSX passive-income stock is Enbridge (TSX:ENB) and here’s why the stock belongs in your portfolio.
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Enbridge is the stock every portfolio needs
There are more than a few reasons why Enbridge is a great fit for every portfolio, but one of the main reasons has to do with its core business. Enbridge operates the largest and most complex pipeline network on the planet.
That includes both natural gas and crude segments, and Enbridge hauls massive amounts of both daily. In fact, Enbridge transports so much crude and natural gas that the company now boasts one of the largest defensive moats on the market.
In case you’re wondering about how much that works out to, Enbridge hauls approximately one-third of all North American-produced crude. Turning to natural gas, the volume transported works out to nearly one-fifth of the needs of the entire U.S. market.
Let the sheer volume of that one segment sink in for a moment while I mention that it’s only one part of Enbridge.
Enbridge also operates a growing renewable energy portfolio. That segment comprises approximately 40 assets located across North America and Europe. That includes hydro, solar, and wind-powered facilities.
Like traditional utilities, those facilities are bound by long-term, regulated contracts that provide a stable and recurring revenue stream for what could be decades.
Speaking of utilities, Enbridge also operates the largest natural gas utility in North America. This, too, provides the company with a stable and recurring revenue stream that leaves room to pay out a generous dividend and fund growth activities.
In short, Enbridge has multiple defensive revenue streams that provide a growing source of revenue for the company.
Enbridge is the TSX passive-income stock
One of the main reasons why investors continue to flock to Enbridge is for the juicy dividend on offer. As of the time of writing, Enbridge pays out a very attractive 6.21% yield. This means that a $30,000 investment in Enbridge will generate an income of just shy of $1,850.
Even better, Enbridge has provided annual upticks to that dividend for three decades without fail. This fact makes it one of the best TSX passive-income stocks to consider buying now and holding for decades.
Prospective investors who aren’t ready to draw on that income yet should note one more key advantage. Reinvesting those dividends until needed will allow this TSX passive-income stock to continue growing on autopilot.
In short, Enbridge is the perfect buy-and-forget stock, and in my opinion, it should be a core holding in any well-diversified portfolio.
