The market is full of great investments that can provide solid growth and income-earning potential. That income can, in some cases, be substantial. And among those income stocks, there is one dividend giant to consider owning right now.
The dividend giant investors should be looking at right now is Enbridge (TSX: ENB), and that’s the stock I would buy more of right now over BCE (TSX: BCE).
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Why not BCE?
BCE is one of the largest telecoms in Canada. Telecoms are incredibly defensive investments, and historically, that would be viewed as a great reason to buy.
Unfortunately, that’s not the case with BCE. The telecom is in the midst of a transformation that has seen it slash costs and staff. BCE even divested itself from its share in MLSE, only to acquire U.S.-based Ziply Fiber.
That acquisition may well provide BCE with the growth it needs over the longer term, but it leaves current investors on the sidelines waiting.
The stagnant growth of BCE has also left it’s stock down significantly and its once superb dividend soaring to unsustainable levels. BCE has also announced a freeze on dividend increases.
In other words, BCE is less than ideal for most investors right now.
Why Enbridge?
The alternative investment, and dividend giant to consider buying right now in Enbridge. The energy infrastructure behemoth is well-known for its lucrative pipeline network. There’s a good reason for that notoriety, as the pipeline segment generates the bulk of Enbridge’s revenue.
The segment, which includes crude and natural gas parts, is also incredibly defensive thanks to the sheer volume hauled. Specifically, Enbridge hauls one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S.
As defensive as that sounds, that represents only part of the appeal that Enbridge has as a dividend giant. Enbridge also operates a growing renewable energy business and operates the largest natural gas utility in North America.
Collectively, those segments provide a reliable revenue stream that leaves room for both growth and that juicy quarterly dividend.
Let’s talk dividends
One of the main reasons why investors love Enbridge as a dividend giant is for its growing, yet lucrative dividend. As of the time of writing, Enbridge offers a tasty 6.17% yield.
This means that investors with $30,000 to invest in Enbridge can expect to earn just shy of $1,900. Adding to that appeal is the fact that Enbridge has provided investors with an annual uptick to that dividend going back three decades without fail. That’s an insane amount of growth from this Dividend Aristocrat, making it worthy of consideration.
For investors who aren’t ready to draw on that income just yet, there’s another key point to note. Investors can choose to reinvest that income, allowing it (and any eventual income) to grow until needed.
That fact alone makes Enbridge one of the dividend giants that belongs in every portfolio.
Will you buy this dividend giant?
Enbridge is the complete package for investors. Not only does it offer a reliable and secure revenue stream, but that revenue is also diversified and growing. The company’s dividend is also one of the best yields on the market and boasts three decades of growth.
In my opinion, Enbridge is one of the must-have stocks in any well-diversified portfolio.
