Few stocks resonate as a reliable dividend stock as much as Enbridge (TSX:ENB). Not only does the company provide an appetizing dividend, but it also boasts a diversified and growing portfolio of verticals to explore.
Here’s why Enbridge is the reliable dividend stock for any portfolio.
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Meet Enbridge: The only stock you need
Enbridge is an energy infrastructure titan. In fact, Enbridge is one of the largest energy infrastructure companies on the planet. The company is best known for its pipeline business, which includes both natural gas and crude oil segments.
The pipeline business transports massive amounts of both each day. In fact, Enbridge transports so much oil and natural gas that the sheer volumes involved make it one of the most defensive stocks on the market.
In case you are wondering, Enbridge hauls one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market.
Incredibly, that’s not even the best part about the segment or this reliable dividend stock.
Enbridge charges for use of its network, operating like a toll-road network. This means that irrespective of which way prices move, Enbridge continues to generate a recurring revenue stream.
And that revenue stream allows Enbridge to invest in growth initiatives across all its segments.
The other parts of Enbridge
In addition to its lucrative pipeline business, Enbridge boasts several other impressive segments. That list includes both a renewable energy business as well as a natural gas utility.
The renewable energy operation consists of facilities located across North America and Europe, generating a reliable revenue stream backed by long-term regulated contracts. Enbridge has invested heavily in the segment, which continues to see growth.
That regulated business nature extends to Enbridge’s natural gas business. Enbridge operates one of the largest Natural gas utilities in North America, which provides a regulated and reliable source of revenue.
Across all its segments, Enbridge generates a revenue stream that allows it to invest in growth initiatives from its multi-billion-dollar backlog and pay out a handsome dividend. And it’s that payday which makes Enbridge a reliable dividend stock.
More about that dividend
Enbridge’s dividend is the real reason investors continue to flock to the stock. As of the time of writing, Enbridge offers a tasty quarterly dividend with a yield of 5.6%. That makes the stock one of the best dividends on the market.
By way of example, investors who drop $30,000 into Enbridge can expect to earn an annual income of just under $1,700.
And that is not even the best part.
Enbridge has provided annual upticks to that dividend going back three decades without fail. The company also plans to continue that cadence over the next several years.
That means investors who aren’t ready to draw on that income yet can choose to reinvest those dividends, allowing them to grow until needed.
Enbridge: A reliable dividend stock
No investment, even the most defensive, is without risk. Fortunately, Enbridge checks all the boxes as a great long-term investment. The company offers defensive appeal and stable business segments. Factor in the dividend, and Enbridge is the complete package, making it a superb, reliable dividend stock.
In my opinion, Enbridge is a top pick for any well-diversified portfolio.
Buy it, hold it, and watch your investment (and future income) grow.
