The market is full of great long-term dividend stocks that can provide a growing income which can last decades. Some of those dividend stocks can also offset some of the market volatility we’ve seen this year.
Here’s a look at two dividend stocks to consider buying right now with $5,000.
Start with this stock offering growth and income
The first of the two dividend stocks under consideration for a $5,000 investment is Enbridge (TSX:ENB). Enbridge is an energy infrastructure behemoth offering reliable revenue streams, stellar growth potential, and a juicy yield.
The bulk of Enbridge’s revenue is generated from its pipeline business. That segment, which includes both crude and natural gas, connects refineries and production facilities across the continent.
The pipeline business is incredibly defensive thanks to the sheer necessity of the crude and natural gas being transported. Adding to the appeal is that Enbridge doesn’t charge access to its network based on commodity prices.
In other words, irrespective of how oil prices move, Enbridge continues to generate a stable, recurring revenue stream. And that’s not even the best part.
Enbridge also operates a growing renewable energy segment. That includes hydro, solar, and wind facilities located across North America and Europe. Those facilities provide a recurring revenue stream backed by long-term regulated contracts, similar to a utility business.
Speaking of utilities, Enbridge also operates a natural gas utility. This provides yet another recurring revenue stream with defensive appeal that leaves room for growth and dividend payments.
That dividend is what investors should be excited about. Apart from the three decades of consecutive annual increases, Enbridge’s quarterly dividend pays out a juicy 5.9% yield.
This handily makes Enbridge a must-have among dividend stocks that will provide a growing income for years to come. Investors with $2,500 to invest in Enbridge will generate several additional shares solely through reinvestments, fueling any long-term income portfolio.
Here’s another defensive gem that can boost your income
The market is full of great long-term dividend stocks that can provide a handsome income for years. Another great option to consider right now is Telus (TSX:T).
Telus is one of Canada’s big telecom stocks. The company generates a stable (and growing) revenue stream primarily through its subscription-based offerings. Specifically, Telus provides wireless, wireline, internet, and TV offerings.
Those segments are incredibly defensive and growing in importance. In fact, the defensive appeal of the internet and wireless segment has grown considerably in the past several years.
That defensive appeal, coupled with the growing demand for 5G connections, translates into a growing and recurring revenue stream. That revenue stream is sufficient for Telus to invest in growth and pay out one of the best dividends on the market.
That growth comes in the form of Telus upgrading and expanding its 5G infrastructure. This year alone, Telus has allocated $2.5 billion towards capital initiatives.
Incredibly, that’s not the only focus of investment for Telus. Telus also boasts a growing Digital Services arm, which includes focused areas in healthcare and agriculture.
Turning to dividends, Telus boasts a quarterly dividend that as of the time of writing, pays out an insane 7.8% yield. Prospective investors should note that just like Enbridge, Telus has an established cadence of increasing that dividend on an annual or better basis.
For investors ready to drop $2,500 on Telus, that works out to an income which can generate several more shares through reinvestments.
Buy dividend stocks today for long-term income tomorrow
Both Enbridge and Telus offer investors a tasty, well-covered dividend as well as significant growth potential.
With even a $5,000 investment split between these two stocks, prospective investors can begin to establish a long-term income stream thanks to the power of reinvestments!
| Company | Recent Price | No. Of Shares | Dividend | Total Payout | Frequency |
| Enbridge | $64.01 | 39 | $3.77 | $147.03 | Quarterly |
| Telus | $20.76 | 120 | $1.61 | $193.20 | Quarterly |
In my opinion, one or both of the above should be core holdings in any well-diversified portfolio.
Buy them, hold them, and watch your future income grow.
