Markets occasionally go through pullbacks and corrections, which are normal parts of the investment cycle. When they do happen, it presents an opportunity for investors to consider picking up some top TSX dividend stocks at hefty discounts.
That opportunity has come now, and the stock to consider right now is Enbridge (TSX:ENB).
Meet Enbridge
Enbridge is a massive energy infrastructure company with incredible long-term appeal. The company generates a reliable revenue stream from several different business segments that include pipelines, renewables, and utilities.
Among those segments, the pipeline business generates the bulk of Enbridge’s revenue. The segment, which includes both crude and natural gas elements, transports massive amounts of both across North America each day.
In terms of volume, Enbridge hauls nearly one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market.
Let the sheer volume of that (and, by extension, defensive appeal) sink in for a moment before I mention another key advantage.
Enbridge charges for the use of its vast network but not based on the price of the commodity being hauled. In other words, irrespective of which way oil prices move, Enbridge still gets paid.
Incredibly, that’s still not all that Enbridge does. The renewable energy business and the natural gas utility provide a similarly defensive and reliable revenue stream.
In short, the company is a defensive gem that generates a recurring revenue stream that leaves room for growth and for Enbridge to pay out a handsome dividend. And it’s that dividend that makes Enbridge a top TSX dividend stock.
Let’s talk about that income
One of the main reasons why investors flock to Enbridge (and what makes it a top TSX dividend stock) is its dividend.
Enbridge pays investors a quarterly dividend that currently works out to an impressive 5.90% yield. To put that earnings potential into context, let’s consider a $30,000 investment (as part of a larger, well-diversified portfolio).
For that initial outlay, investors can expect to generate an income of just over $1,800.
Prospective investors should take note of one more key detail. Enbridge has provided investors with annual upticks to that dividend for an incredible three decades without fail.
The company also has plans to continue that tradition. This means prospective investors considering investing in this top TSX dividend stock can look forward to years of increases.
Even better, investors who aren’t ready to draw on that income yet can choose to reinvest it until needed. This will allow that growing dividend to boost any eventual income taken in the future.
Buy this top TSX dividend stock now
Market volatility has put many stocks into discount territory, and that includes Enbridge. As of the time of writing, Enbridge trades down 2% this week. That’s considerably less of a decline than many other parts of the market right now, which speaks to Enbridge’s defensive appeal.
In my opinion, Enbridge is a core holding that should be in every well-diversified portfolio.
Buy it, hold it, and watch your future income grow.
