Most income investors are aware of the massive potential that Enbridge (TSX: ENB) offers. But there’s another reason why investors are buying this TSX stock right now.
Here’s a look at what Enbridge offers and why investors are buying this TSX stock.
Meet Enbridge (and all its parts)
Enbridge is best known for its massive pipeline network, and there’s a good reason for that. That segment, which includes both crude and natural gas elements, generates the bulk of Enbridge’s revenue.
It’s also the largest and most complex pipeline system on the planet, hauling massive amounts of both each day. This includes a whopping one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market.
Apart from that pipeline business, Enbridge also offers prospective investors access to a growing renewable energy business. As of the time of writing, that segment comprises nearly 40 facilities located across Europe and North America.
Those sites include solar, wind, and hydro assets. They generate a stable and recurring revenue stream that is backed by long-term regulated contracts.
Even better, Enbridge continues to invest into the segment. Over the past two decades, Enbridge has dropped over $10 billion into renewables, and that number is set to continue growing.
Finally, we should also mention Enbridge’s natural gas utility business. That segment is now the largest natural gas utility on the continent. That growth comes thanks to a series of acquisitions completed over the past year.
Collectively, the natural gas segment now serves 7 million customers across North America, providing yet another defensive and stable revenue stream for Enbridge.
Here’s the real reason why investors love Enbridge
Given all of its lucrative (and cash-generating) businesses, there’s one more reason why investors love buying this TSX stock.
That would be Enbridge’s tasty quarterly dividend. As of the time of writing, Enbridge’s dividend carries a yield of 6.3%. This makes the stock one of the better-paying yields on the market.
By way of example, a $30,000 investment in Enbridge will earn a first-year income of just over $1,875. Adding to that appeal is the fact that Enbridge has provided annual upticks to that yield going back three decades without fail.
Additionally, there’s one more important point to consider. Prospective investors who aren’t ready to draw on that income yet can reinvest it until needed.. This allows any eventual income to continue growing on its own.
Not only does this solidify Enbridge as a great stock (hence, why so many are buying this TSX stock), but also as a superb buy-and-forget candidate.
I’m still buying this TSX stock. Are you?
Enbridge is the complete package for any investor. The stock offers plenty of diversified revenue streams, solid growth potential, and one of the best dividends on the market.
While every stock carries some risk, Enbridge remains, in my opinion, one of the best options to include in any well-diversified portfolio.
