There’s no shortage of great stocks for investors to consider on the market. Some of these cater to growth-focused investors, and others cater to income investors. There’s also one superb dividend champion that caters to both.
That stock is Enbridge (TSX:ENB), and here’s why the dividend champion is appealing to both growth and income investors alike.
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Enbridge is one stock that has it all
Enbridge is an energy infrastructure behemoth that is best known by most investors for its pipeline business. That business includes both natural gas and crude elements, generating the bulk of Enbridge’s revenue. It also provides ample revenue for Enbridge to invest in growth initiatives and pay out a handsome dividend.
The pipeline segment is also very defensive, owing to the sheer volume transported across that pipeline network. Specifically, Enbridge hauls one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S.
Apart from the pipeline segment, Enbridge also offers income investors an opportunity to invest in other segments. This includes a growing renewable energy segment as well as a natural gas utility.
Both segments provide a recurring and stable revenue stream backed by regulated contracts. Enbridge is also continuing to invest in both segments, with the renewable segment alone seeing a whopping $12 billion influx in the past two decades.
That juicy income is hard to ignore
One of the main reasons why investors turn back to Enbridge is for the company’s quarterly dividend. Not only does this make it appealing for income investors, but it can also prove to be a long-term source of growth.
As of the time of writing, Enbridge offers a 6.1% yield. This means investors who can drop $30,000 into Enbridge (as part of a larger, well-diversified portfolio) can expect to earn an income of over $1,800.
And that’s not even the best part.
Enbridge has provided annual upticks to that dividend for three consecutive decades without fail. Not only does this make Enbridge ideal for income investors, but it can also help build a future income stream through reinvestments.
In other words, prospective income investors don’t need a $30,000 investment to build out a decent portfolio. Even a $3,000 investment in Enbridge will generate a couple of shares through reinvestments each year.
Income Investors: This is the one single stock you need
Enbridge is a rare breed of stock. The company boasts superb long-term growth potential within a very defensive business model. Enbridge also pays out a handsome dividend that continues to see annual bumps.
Finally, the dividend champion offers a well-diversified portfolio of segments that generates a stable, growing source of revenue.
In short, Enbridge is not only built for income investors, but for all investors. In my opinion, Enbridge should be a core holding in any well-diversified portfolio.
Buy it, hold it, and watch your future income grow.
