Is Enbridge Stock a Good Buy Today?

When it comes to picking stocks that are a good buy, there are few, if any, stocks that have as much long-term potential for investors as Enbridge (TSX:ENB).

But what makes Enbridge stock a good buy today and tomorrow? There’s more than a handful of reasons why, so let’s break those down.

Reason #1: The defensive play

Enbridge is best known for its pipeline business. The company’s impressive pipeline business, which includes both natural gas and crude oil segments, is huge.

In fact, it’s one of the largest and most complex pipeline systems on the planet. Every day, 5.8 million barrels of crude traverse Enbridge’s network. In total, the company hauls nearly one-third of all North American-produced crude.

Turning to the natural gas side, the numbers are equally impressive. Enbridge transports approximately 20.5 billion cubic feet of natural gas per day. That accounts for approximately 20% of the natural gas needs of the U.S. market.

To say that this makes Enbridge a defensive stock is a gross understatement. The pipeline business provides a recurring revenue stream that is both defensive and growing. In fact, Enbridge has a multi-billion-dollar backlog of projects that will expand that network further.

Incredibly, despite that defensive appeal, there is still much more to love about Enbridge that makes it a good buy.

Reason #2: The diversified businesses

As impressive as that pipeline business is, that’s only one part of the complete package appeal that Enbridge brings to the table.

Those other parts include Enbridge’s growing renewable energy portfolio and its natural gas utility & storage businesses.

The renewable energy business in particular runs contrary to the view that Enbridge is all about oil. Enbridge has dropped over $12 billion into the segment over the past two decades, and that investment shows.

The segment boasts a generating capacity of over 4,000 megawatts, which is enough to power nearly two million homes. The facilities powering the segment include wind, solar and geothermal sites, located across North America and Europe.

Turning to the natural gas business, the opportunities are equally as appealing (and defensive). Enbridge’s footprint in that segment includes seven million natural gas utility customers across the U.S. and Canada.

The company also boasts an impressive 622 billion cubic feet of natural gas storage capacity across North America. This business generates storage fees and provides yet another defensive source of revenue for the company.

Reason #3: That gorgeous income

One of the main reasons why investors continue to run towards Enbridge is for the tasty income it offers. Enbridge offers investors a quarterly dividend that pays out an impressive 5.46% yield. This makes it one of the better-paying dividends on the market.

To put that into perspective, a $25,000 investment in Enbridge will generate an income of $1,360. Adding to that appeal is the fact that Enbridge has provided investors with a tasty annual uptick to that dividend going back three decades without fail.

That fact alone is reason enough for investors to see Enbridge as a good buy today.

Is Enbridge stock a good buy today?

For those investors looking for a great stock to buy, Enbridge is the full package. The company offers multiple, diversified business segments that generate a healthy revenue stream that continues to grow.

That tasty revenue also allows the company to invest in growth initiatives while paying out one of the best dividends on the market.

Now take that whole offer and wrap it in one of the best defensive moats on the market, and you have one insane long-term option that should be a core holding for any well-diversified portfolio.

Buy it, hold it, and watch your (future) income grow.