There are some great investments on the market to choose from. Some of those great options can cater to both income and growth-minded investors. One example is a stock so compelling that I’m finally putting my money where my mouth is.
That stock I’m putting my money into is Enbridge (TSX: ENB). Here’s why I’m investing in the stock and why you should, too.
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Meet Enbridge
Most investors are aware of Enbridge, at least in some way. The company is best known for its pipeline network, and for good reason, too.
That network, which consists of both gas and crude elements, is a key advantage for prospective investors. That’s because Enbridge hauls massive amounts of each across its network each day.
Specifically, Enbridge transports one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market.
That reliance helps Enbridge generate a reliable and recurring revenue stream while also making it one of the most defensive options on the market.
Adding to that appeal is the fact that Enbridge charges for use of its network, but not by the volatile price of the commodity hauled. This means that irrespective of which way oil prices move, Enbridge continues to generate a reliable and recurring revenue stream from the segment.
For prospective investors, this makes Enbridge a superb long-term pick. For existing investors such as myself, Enbridge remains a great option to continue putting my money into.
Enbridge is highly diversified
Apart from its well-known pipeline business, Enbridge also operates several other, equally impressive and profitable ventures.
That growing list includes both a renewable energy business and a natural gas utility.
The renewable energy business consists of a portfolio of over 35 facilities located across North America and Europe. Those facilities generate a recurring revenue stream backed by regulated contracts, which can span decades.
Collectively, the segment generates nearly 3.5 GW of electricity, which is sufficient to meet the power demands of 1.3 million homes.
Turning to the natural gas business, Enbridge boasts nearly 7 million customers in the segment. Like the renewables business, the natural gas segment generates a recurring revenue stream backed by long-term contracts.
Enbridge’s gas network boasts a whopping 178,000 Km of transmission, transportation and main lines, making it one of the largest players in the natural gas utility business in North America.
Enbridge also pays out a juicy dividend
One of the best reasons to consider Enbridge right now is the reason why investors keep flocking back to the stock. The reason for that is simple: Enbridge’s tasty quarterly dividend.
If I’m putting my money down into an income-producing stock, I want it to provide a tasty yield, strong growth potential, and some defensive appeal so that I can let reinvestments work on their own.
Enbridge’s quarterly dividend checks off all of those boxes.
As of the time of writing, Enbridge’s yield works out to a tasty 6.1%. This means that a $40,000 investment in the stock will return a tasty income just shy of $2,500 in the first year.
The reason I say first-year is because Enbridge has an established cadence of providing investors with annual bumps to that dividend going back three decades.
The company also has plans to continue that well-covered dividend.
I’m putting my money to work. What about you?
Enbridge is the perfect long-term investment. The company boasts stellar growth potential and significant defensive appeal.
The energy infrastructure giant is also well-diversified across multiple areas of the segment, and to top it off, pays out one of the fastest-growing yields on the market.
In my opinion, investors should consider investing in Enbridge as part of a larger, well-diversified portfolio.
Buy it, hold it, and watch your future income grow.
