Advertisement
Canada markets closed
  • S&P/TSX

    22,465.37
    +165.54 (+0.74%)
     
  • S&P 500

    5,303.27
    +6.17 (+0.12%)
     
  • DOW

    40,003.59
    +134.21 (+0.34%)
     
  • CAD/USD

    0.7348
    +0.0002 (+0.03%)
     
  • CRUDE OIL

    80.00
    +0.77 (+0.97%)
     
  • Bitcoin CAD

    90,957.16
    -152.14 (-0.17%)
     
  • CMC Crypto 200

    1,360.87
    -12.98 (-0.94%)
     
  • GOLD FUTURES

    2,419.80
    +34.30 (+1.44%)
     
  • RUSSELL 2000

    2,095.72
    -0.53 (-0.03%)
     
  • 10-Yr Bond

    4.4200
    +0.0430 (+0.98%)
     
  • NASDAQ

    16,685.97
    -12.35 (-0.07%)
     
  • VOLATILITY

    11.99
    -0.43 (-3.46%)
     
  • FTSE

    8,420.26
    -18.39 (-0.22%)
     
  • NIKKEI 225

    38,787.38
    -132.88 (-0.34%)
     
  • CAD/EUR

    0.6755
    -0.0001 (-0.01%)
     

This 7 Percent Dividend Stock is My Top Pick for Immediate Income

Businessperson's Hand Putting Coin In Piggybank
Image source: Getty Images

Written by Demetris Afxentiou at The Motley Fool Canada

Some of the best long-term stocks can provide a juicy dividend for decades. Even better, some of those stocks can provide an immediate income stream for investors.

Let’s take a quick look at one stock that can provide an immediate income, Enbridge (TSX:ENB).

Meet Enbridge – the one stock you need to buy now

For those who are unfamiliar with Enbridge, the company is an energy infrastructure behemoth. Enbridge generates the bulk of its revenue from its lucrative pipeline business, but also operates several other segments.

That pipeline segment hauls a massive amount of crude and natural gas. In short, Enbridge hauls nearly one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market.

ADVERTISEMENT

More importantly, the revenue generated from those pipeline networks is not impacted by market volatility or the price of commodities.

In other words, Enbridge is an incredibly defensive option to consider buying now to generate an immediate income.

And that’s not all. Enbridge also operates one of the largest utilities in North America and a growing renewable energy portfolio. That renewable energy portfolio comprises over 40 facilities located in Europe and North America.

Enbridge has also invested over $8 billion into the segment over the past two decades, which includes wind, solar, and geothermal elements. The segment generates over 2,100 MW net capacity, which is enough to power over 960,000 homes.

Generate a juicy, immediate income

One of the main reasons why Enbridge attracts investors is for its very appetizing dividend. As of the time of writing, Enbridge offers a quarterly dividend with a yield of 7.63%. This makes Enbridge one of the better-paying dividend stocks on the market.

It also means that investors who can invest $25,000 in the stock today can expect an immediate income of over $1,900 in the first year alone.

Even better, investors who aren’t ready to draw on that income yet can choose to reinvest those dividends until needed. It’s also worth noting that Enbridge has provided an annual uptick to that juicy dividend for nearly three decades without fail.

And one final reason to consider Enbridge is timing. Despite its significant appeal, the stock trades down 12% year to date, making it a discounted must-have for any long-term investor.

Final thoughts

All investments, even the most defensive, come with some risk. That’s part of the reason why the importance of diversifying your portfolio cannot be understated. Fortunately, Enbridge offers some defensive appeal that is coupled with strong growth and a juicy income.

In my opinion, Enbridge is a great long-term investment for your well-diversified portfolio. Not only will it generate an immediate income stream, but it will provide years of growth, too.

The post This 7 Percent Dividend Stock is My Top Pick for Immediate Income appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Enbridge?

Before you consider Enbridge, you'll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in August 2023... and Enbridge wasn't on the list.

The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 26 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks * Returns as of 8/16/23

More reading

Fool contributor Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

2023