Picking the right stock to buy and hold for retirement can make all the difference in your long-term portfolio. Fortunately, the market gives us plenty of options to choose from.
Here’s a look at one option for investors to consider buying now. You could say that it’s the only stock to buy and hold for retirement.
The stock every portfolio needs
There is no shortage of great stocks to buy and hold for retirement on the market. One stock that investors should consider adding right now is Enbridge (TSX:ENB).
Most investors recognize Enbridge for its lucrative oil pipeline business. The pipeline business hauls massive amounts of crude and natural gas each day. In fact, Enbridge hauls so much of each that it makes Enbridge one of the most defensive plays on the market.
To put the sheer volume involved into context, Enbridge transports one-third of all North American-produced crude. Turning to natural gas, that number works out to the equivalent of one-fifth of the natural gas needs of the entire U.S. market.
Incredibly, that’s not even the best part.
Enbridge charges a fee for using its massive pipeline network, but that fee isn’t based on the volatile price of the commodity being hauled. In other words, irrespective of which way the price of oil and gas moves, Enbridge continues to generate a reliable and recurring source of revenue.
And it’s that stable revenue stream that makes Enbridge a key holding to buy and hold for retirement. It also helps Enbridge to continue investing in growth and pay out a handsome dividend.
On the growth side, there’s no shortage of projects in Enbridge’s multi-billion-dollar backlog.
More importantly, the pipeline business isn’t the only part of Enbridge’s massive energy infrastructure portfolio.
The other parts of Enbridge
One of the key reasons why Enbridge is such a great option to buy and hold for retirement comes down to the company’s diversified business.
In addition to that lucrative pipeline business, Enbridge also boasts a renewable energy business and a growing natural gas utility.
The renewable energy business comprises over 30 wind and solar facilities located across Europe and North America. Those facilities generate a stable and recurring source of revenue that is backed by regulated contracts.
Collectively, the segment generates nearly 3,500 MW of net generating capacity, which translates into the energy needs of 1.3 million homes.
Enbridge also continues to invest in the segment. In fact, over the past two decades, the company has invested over $12 billion into renewables.
Turning to natural gas, prospective investors looking at Enbridge as an option to buy and hold for retirement will not be disappointed. The company operates the largest natural gas utility in North America, with nearly 7 million customers.
Like the renewable energy business, the natural gas utility generates a reliable revenue stream that is backed by regulated long-term contracts.
What about income?
Investors looking to buy and hold for retirement are likely wondering about Enbridge’s dividend, and they won’t be disappointed.
Enbridge offers a tasty quarterly dividend that currently pays out a yield of 6.1%. This means that investors who drop $40,000 into Enbridge (as part of a larger, well-diversified portfolio) can expect to earn an income of just over $2,400.
Investors who aren’t ready to draw on that income can choose to reinvest it, allowing any eventual income to continue growing.
It’s also worth noting that Enbridge continues to provide investors with annual bumps to that dividend. Enbridge has provided annual increases to that dividend for an incredible three decades without fail.
That fact alone makes Enbridge an option, including the option to buy and hold for retirement.
Enbridge: Will you buy and hold for retirement?
Enbridge offers investors the full package. From a reliable, defensive operation in its pipeline business to its diversified and growing renewable energy business, there’s something for every investor.
Throw in a juicy yield and 30 consecutive years of increases, and you have the perfect buy-and-forget stock. The stock should be on the radar of investors everywhere.
In my opinion, Enbridge is a must-have investment for any well-diversified portfolio.
Buy it, hold it, and watch your portfolio (and future income) grow.
