Picking the right stocks to add to your portfolio can make all the difference between retiring early with a handsome income or needing to work a few extra years. Fortunately, the market offers some stocks to consider that can help realize that goal, including this delicious dividend stock.
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Meet your future income generator
A delicious dividend stock for investors to consider right now is Enbridge (TSX: ENB). For those unfamiliar with the stock, Enbridge is one of the largest energy infrastructure companies on the planet.
Enbridge is best known for its pipeline network, which generates the bulk of the company’s revenue.
The pipeline business carries vast amounts of crude and natural gas each day across that vast network. In fact, Enbridge carries so much crude and natural gas that the company is arguably one of the most defensive picks on the market.
More specifically, Enbridge transports one-fifth of the natural gas needs of the entire U.S. market, and one-third of all North American-produced crude. And that’s not even the best part.
Enbridge charges for use of its network, but not by the volatile price of the commodity being hauled. In other words, regardless of which way oil prices move, Enbridge still generates a recurring and stable revenue stream.
Beyond the pipeline business, Enbridge still offers more to investors.
That includes both a renewable energy business and operating one of the largest natural gas utilities in North America.
Enbridge’s renewable energy business consists of over 30 facilities located across Europe and North America. Enbridge has invested over $20 billion into its renewable business over the past two decades.
Like a traditional utility, this renewable energy operation generates a stable and recurring source of revenue that is backed by regulated, long-term contracts.
Speaking of utilities, Enbridge’s natural gas utility also offers investors significant defensive appeal. The natural gas utility is also backed by regulated contracts, serving over seven million customers in North America.
Collectively, Enbridge’s segments generate ample revenue that allows the company to invest in multiple growth initiatives while paying out a handsome dividend.
That stability makes Enbridge a delicious dividend stock for any investor, but there’s still more.
Let’s talk about income
Investors continue to seek out Enbridge as a delicious dividend stock for any portfolio. That’s because the stock offers a well-covered high-yield and growth potential.
As of the time of writing, Enbridge’s quarterly dividend works out to an impressive 5.74% yield.
This means that a $30,000 investment in Enbridge will generate a cool $2,000 each year. Prospective investors who aren’t ready to draw on that income yet can choose to reinvest those dividends. This will allow any eventual income to continue growing on its own through reinvestments.
Additionally, it’s worth noting that Enbridge has provided investors with annual upticks to that dividend for three decades without fail. This fact alone makes Enbridge not only a delicious dividend stock, but a buy-and-forget favourite.
Buy your delicious dividend stock today
Investors seeking a delicious dividend stock buy that is also a great long-term gem will appreciate Enbridge. The stock offers growth, a stable income, and significant defensive appeal.
In my opinion, Enbridge should be a core holding in any well-diversified portfolio.
Buy it, hold it, and watch your portfolio grow.
