Have you added Enbridge (TSX:ENB) to your portfolio yet? If not, now might be a great time to consider buying what is arguably the smartest Canadian stock for your portfolio.
Here’s a look at what makes Enbridge the smartest Canadian stock to buy, even if you only have $2,000 available now.
Meet Enbridge
Enbridge is an energy infrastructure giant. The company is best known for its extensive pipeline business, and for a good reason. That pipeline business forms what is the largest and most complex pipeline network on the planet.
The pipeline business generates the bulk of Enbridge’s revenue, which is a testament to the sheer volume hauled across that network.
Specifically, Enbridge hauls one-third of all North American-produced crude across its network. Turning to natural gas, Enbridge transports one-fifth of the natural gas needs of the entire U.S. market.
This not only helps Enbridge to generate a recurring revenue stream, but it also makes the stock one of the best defensive options on the market (and, by extension, the smartest Canadian stock for investors).
But that’s not all.
Enbridge also boasts a growing renewable energy business. Over the past two decades, Enbridge has invested over $12 billion in the segment.
Today, that business includes over 35 solar, hydro and wind facilities located across Europe and North America. Those facilities provide yet another reliable revenue stream that leaves room for growth investments and a tasty dividend (more on that in a bit).
Collectively, those renewable energy facilities have a net generating capacity of nearly 3,500 megawatts. That’s enough capacity to meet the power needs of 1.3 million homes.
Another key point to note is Enbridge’s natural gas utility business. That segment provides yet another revenue stream that is backed by long-term contracts, much like a traditional utility business.
The segment is also incredibly defensive, contributing to Enbridge’s label as the smartest Canadian stock to own right now.
Let’s talk about income
One of the main reasons investors continue to flock to Enbridge is the juicy income it offers. As of the time of writing, Enbridge offers a tasty 5.94%.
Not only does this make the stock one of the better-paying options for investors on the market, but it also means that even a $2,000 investment will generate a few shares each year through reinvestments.
Adding to that appeal is the fact that Enbridge has provided annual bumps to that dividend without fail for over three consecutive decades. This adds to the overall buy-and-forget appeal of the stock and furthers its appeal as the smartest Canadian stock to own right now.
Will you buy the smartest Canadian stock right now?
All stocks, even those that offer defensive appeal, carry some risk. In the case of Enbridge, that risk is minimized thanks to its well-diversified segments and defensive appeal.
Throw in a growing juicy dividend, and you handily have one of the smartest, if not the smartest, Canadian stocks to own right now.
In my opinion, Enbridge belongs in every well-diversified portfolio.
Buy it, hold it, and watch your future income grow.
