The market is full of superb investment options that can supercharge your portfolio into a cash-creating machine. Even better, investors don’t need hundreds of thousands of dollars to create an income stream.
Here’s how you can start a cash-creating machine with just $15,000 and a few key investments.
You need a high-yield, super-charged stock
To create a cash-creating machine, you need high-quality, high-yield stocks that have a superior record of paying dividends. Enbridge (TSX:ENB) fits that description perfectly.
Enbridge is one of the largest energy infrastructure stocks on the continent. The company is best known for its pipeline business, which comprises the largest and most complex system on the planet.
That pipeline business, which includes crude and natural gas segments, generates a stable and recurring revenue stream. That revenue stream, coupled with Enbridge’s growing renewable energy business and natural gas business, provides one of the best defensive moats available.
It also allows Enbridge to invest in growth and pay out a very handsome dividend. As of the time of writing, that dividend works out to a tasty 5.8%.
For investors who drop a mere $7,000 into the stock, that translates into an income stream of just over $400. That’s not enough to retire on, but it is enough to generate a few shares each year through reinvestments.
Oh, and speaking of reinvestments, Enbridge has an established history of providing annual increases to that dividend going back three decades.
In other words, Enbridge is a key addition for establishing a cash-creating machine in your portfolio.
How about a higher yield with a more defensive business?
Investors who thought Enbridge was a high-yield defensive gem will love Telus (TSX:T).
Telus is one of Canada’s big telecoms, offering core subscription-based services to customers across the country. The company has also invested heavily over the years into a growing digital services portfolio.
In other words, Telus is a well-diversified business backed by a sizable defensive moat. Like Enbridge, that stability allows Telus to invest in growth and pay out a very generous quarterly dividend.
As of the time of writing, Telus offers investors an insane 7.9% yield, making it one of the highest-paying yields on the market. Telus has also provided annual or better increases to that dividend over the years.
In fact, the telecom has provided those upticks for nearly two decades without fail, making this yet another option to establish a cash-creating machine.
Investors who can drop $7,000 into Telus can expect to generate just over $555 in dividend income. Again, the objective is to establish that cash-creating machine by investing early and letting dividend reinvestments grow that portfolio over time.
In fact, allowing those tax-free dividends in a TFSA to grow for decades can make a huge difference in any future income stream.
The cash-creating machine your portfolio needs
Both Telus and Enbridge can provide investors with decades of tasty growing dividends. They also boast reliable revenue streams and impressive defensive moats that can withstand market volatility.
In my opinion, one or both stocks are ideal candidates for any cash-creating machine as part of any well-diversified portfolio.
Buy them, hold them, and watch them grow.
