If I Could Only Buy and Hold a Single Stock, This Would Be it

Do you want a great stock you can buy and hold? Here’s my top pick to consider buying that is appealing for both growth and income investors.

| More on:
data analyze research

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There’s no shortage of great stocks to buy and hold on the market. And while the general consensus on diversification calls for multiple investments across a broad spectrum of the market, there is one stock in particular for investors to consider.

In fact, it’s the one stock that I would choose to buy and hold if I could only pick one. In case you’re curious, that stock is Enbridge (TSX:ENB), and here’s why it’s the stock to buy and hold right now.

Meet Enbridge: More than a one-trick stock

Most investors know about certain parts of Enbridge, such as its pipeline network. There’s a good reason for that, as the pipeline segment generates the energy infrastructure giant’s revenue and comprises both crude and natural gas elements.

More importantly, the segment is incredibly defensive, thanks to the insane amounts of crude and natural gas hauled each day. To put that amount into perspective, Enbridge hauls one-third of all North American-produced crude across its vast network.

Turning to natural gas, the volume is equal to one-fifth of the energy needs of the entire U.S. market.

Suffice it to say, Enbridge’s pipeline business is a necessity and an incredibly defensive option for investors looking to buy and hold a single stock (always in a larger portfolio!).

But that’s not even the best part about Enbridge’s vast pipeline network.

The company charges for the use of its network and not for the volatile price of the commodity being hauled. This means that irrespective of which way crude prices move, Enbridge continues to generate a recurring revenue stream that leaves room for growth investments and a juicy yield (more on that in a moment).

The other (lucrative) parts of Enbridge

Some investors may be shocked to realize that Enbridge also boasts one of the largest renewable energy portfolios in Canada. The company’s growing network of sites includes sites in both North America and Europe, providing another reliable and recurring revenue stream.

Enbridge’s renewable energy business consists of solar, hydro and wind facilities. Collectively, those facilities generate a net capacity of 3,481 megawatts (MW), which is sufficient to power 1.3 million homes.

Investors should note that Enbridge has invested over $10 billion into the segment over the past two decades. The company also remains committed to investing further in the segment, which holds massive long-term potential.

Another segment worth noting is Enbridge’s natural gas utility business. Enbridge boasts seven million customers across the U.S. and Canada, a feat which now ranks the company as one of the largest natural gas utilities on the continent.

This is yet another defensive business segment that provides a reliable revenue stream that is both stable and growing. That fact alone makes Enbridge an intriguing option to buy and hold.

Let’s talk about that dividend

One of the main reasons why investors continue to flock to Enbridge is because of the dividends that it offers. The company has been paying out dividends for over 69 years without fail. Enbridge has also amassed an impressive three decades of consecutive annual increases to that dividend.

As of the time of writing, Enbridge pays out a juicy 6.06% yield, making it one of the best yields on the market. For investors looking for a stock to buy and hold, that yield means that a $35,000 investment will generate an income of over $2,130.

Keep in mind that prospective investors who aren’t ready to draw on that income yet can reinvest it, allowing any future income to continue to grow on its own. Again, this makes Enbridge a solid option to buy and hold for the long term.

Created with Highcharts 11.4.3Enbridge PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Will you buy and hold this stellar stock?

No stock is without some risk, and that even includes defensive picks like Enbridge. Fortunately, Enbridge boasts multiple defensive segments and a juicy yield to minimize much of that risk.

In my opinion, investors looking for a solid stock to buy and hold can confidently add a position in Enbridge to any well-diversified portfolio.

Should you invest $1,000 in Enerplus right now?

Before you buy stock in Enerplus, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Enerplus wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Energy Stocks

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Is Enbridge Stock (TSX:ENB) a Buy for its 5.9% Dividend Yield?

This solid dividend payer has the potential to help investors generate reliable passive income for decades.

Read more »

nugget gold
Dividend Stocks

Recession Stocks Are Back: Consider Buying the Dip This April

Recession stocks are back, and this one could be a solid winner.

Read more »

Person holds banknotes of Canadian dollars
Energy Stocks

Best Stock to Buy Right Now: Suncor vs Cenovus?

Suncor stock's 4.2% dividend yield vs Cenovus Energy's growth potential: Tariff-proof safety or growth gamble?

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How to Earn $500/Month in Tax-Free Income With Your TFSA

Canadians can earn $500 or a desired tax-free income every month by saving and investing through the TFSA.

Read more »

how to save money
Energy Stocks

1 Canadian Stock Ready to Surge in 2025 and Beyond

This Canadian stock has seen significant growth, but more could come for 2025 and beyond.

Read more »

oil and natural gas
Energy Stocks

Here’s How Many Shares of Enbridge You Should Own to Get $2,000 in Yearly Dividends

Solid dividend stocks like Enbridge could help you generate reliable passive income for decades.

Read more »

Pumpjack in Alberta Canada
Energy Stocks

3 Canadian Oil and Gas Stocks to Watch for in 2025

Oil companies like Suncor Energy (TSX:SU) are doing well this year.

Read more »

Aerial view of a wind farm
Energy Stocks

The Best Renewable Energy Stocks to Buy Before They Take Off

Here are two of the best Canadian renewable energy stocks you can buy today and hold for the long term…

Read more »