The market is full of great income-producing stocks that can offer investors a growing dividend that can last for decades. Among those stellar picks is this Canadian dividend legend that should be on every investor’s radar.
That Canadian dividend legend is Enbridge (TSX:ENB), and here’s why the stock belongs in your portfolio.
Meet Enbridge: The stock that does so much
Most investors are aware of Enbridge. The energy infrastructure giant has tentacles in multiple areas of the energy sector.
That presence includes its well-known pipeline network, a growing renewable energy business, and a natural gas utility. Collectively, those segments generate handsome revenue for the company, allowing Enbridge to invest in growth and pay out a handsome dividend (more on that in a bit).
Enbridge’s pipeline business generates the bulk of the company’s revenue. That pipeline operation includes both natural gas and crude elements, collectively making up the largest and most complex pipeline system on the planet.
The pipeline business is also incredibly defensive, thanks to the massive amounts of crude and natural gas hauled daily.
Specifically, Enbridge is responsible for transporting one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market.
In other words, Enbridge is an incredibly defensive investment option in addition to its status as a Canadian dividend legend.
But that’s not all.
Enbridge’s growing renewable energy and natural gas utility businesses are also noteworthy mentions.
Enbridge has invested billions in its renewable energy business. Today, the segment comprises solar, hydro and wind facilities located across North America and Europe.
The facilities generate a reliable and stable revenue stream for the company, much like a traditional utility.
Speaking of utilities, Enbridge’s natural gas utility is another defensive addition. The segment boasts seven million customers in North America, making it one of the largest utilities and another source of recurring, stable revenue.
Collectively, Enbridge’s business units boast reliable revenue generation as well as significant growth appeal. In fact, the company has a backlog of projects across its segments measured in the billions.
Let’s talk about that dividend
One of the main reasons why investors continue to flock to Enbridge is because of the dividend that it offers. As of the time of writing, Enbridge pays out a quarterly dividend with a juicy yield of 6.01%.
This means that prospective investors who drop $7,000 into Enbridge today can expect to generate an income of over $400. That alone is not enough to retire, but it is enough to generate a half dozen shares each year through reinvestments.
In other words, this Canadian dividend legend is also a super buy-and-forget candidate.
Even better, prospective investors should also note that Enbridge has provided investors with generous annual upticks to that dividend going back three decades without fail. The company also plans to continue that cadence.
Will you buy this Canadian dividend legend?
Enbridge is a superb pick for any investor. Apart from its diversified business, the company boasts defensive appeal and a growing dividend.
In my opinion, Enbridge should be a core holding in any well-diversified portfolio.
Buy it, hold it, and watch your future income grow.
