The market is full of superb investments that can provide decades of income. That includes this stellar dividend giant, which can provide a healthy growing income even with just $5,000.
Here’s a look at the income-producing stock that can provide decades of income.
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Meet Enbridge
Enbridge (TSX: ENB) is one of the largest energy infrastructure companies on the planet. The company boasts several large segments that generate a healthy revenue stream, leaving room for growth and that tasty dividend.
The largest of those segments is Enbridge’s pipeline business. The pipeline business includes both natural gas and crude oil, and transports massive amounts of both daily. In terms of volume, Enbridge transports one-third of the crude oil produced in North America and one-fifth of the natural gas needs of the U.S. market.
This fact alone makes Enbridge a lucrative and very defensive option for investors. But there is still much more to love about Enbridge.
Enbridge also operates a growing renewable energy business. This includes dozens of facilities located across Europe and North America. Enbridge has invested billions into its renewables business, which represents a slowly increasing part of Enbridge’s total revenue.
The renewable facilities generate a recurring and growing revenue stream that is not unlike a traditional utility.
And like the pipeline business, the renewable energy business generates revenue that leaves room for growth, as well as a juicy dividend that can provide decades of income.
Speaking of utilities, Enbridge also operates one of the largest natural gas utilities on the continent. That business serves 7 million customers and provides yet another recurring source of revenue for Enbridge.
In short, Enbridge boasts multiple defensive segments that generate a healthy revenue stream.
Want decades of income?
One of the main reasons why investors turn to Enbridge is for the lucrative dividend the company offers. As of the time of writing, Enbridge pays investors a juicy 5.8% yield, making it one of the better-paying dividends on the market.
That’s not all; Enbridge has provided investors with annual bumps to that dividend going back an incredible three decades without fail. The company also plans to continue that cadence. This is a huge and important point for prospective investors, particularly those looking at the buy-and-forget appeal of Enbridge.
In short, this means that investors who have just $5,000 to invest in Enbridge today can still benefit over the longer term. For that initial investment, investors can expect to earn an income just under $300.
That’s not enough to retire with today, but it is enough to generate more than a few shares through reinvestments each year. Factor in expected upticks and growth, and you have a stellar investment that will provide decades of income.
Final thoughts
No stock, even the most defensive, is not without risk. That’s why the importance of diversification cannot be understated. In the case of Enbridge, the stock is well-diversified and offers some defensive appeal.
The company also offers one of the tastiest dividends on the market, making it a must-have for any investor.
In my opinion, investors seeking decades of income should consider buying Enbridge as part of any well-diversified portfolio.
Buy it, hold it, and watch your future income grow.
