Yahoo Finance Beat the TSX With This Cash-Gushing Dividend Stock
Written by Demetris Afxentiou at The Motley Fool Canada
The market provides us with plenty of great options to consider buying. This includes investments that can provide a healthy income. Some of these are high-yield dividend options, including this cash-gushing dividend stock that every investor should consider.
What is that cash-gushing dividend stock to buy?
The cash-gushing dividend stock that investors should consider buying right now is Enbridge (TSX:ENB). Enbridge is one of the largest energy infrastructure stocks on the market.
The company boasts an extensive pipeline network that transports huge amounts of crude and natural gas across North America daily.
In terms of volume, that pipeline network hauls nearly one-third of all North American-produced crude. Turning to natural gas, Enbridge transports nearly one-fifth of the natural gas needs of the U.S. market.
Another key point about that lucrative pipeline segment is how Enbridge charges. Specifically, Enbridge doesn’t charge based on the price of the volatile commodity being hauled. Not only does this provide Enbridge with massive defensive appeal, but it also makes it largely immune to the volatile price of oil.
This allows the company to continue investing in growth and to pay out a very generous dividend. Incredibly, that’s not even the best part about investing in this cash-gushing dividend stock.
And that’s not even the best part.
Enbridge runs a well-diversified operation
Most investors are aware of Enbridge’s pipeline business. Some are also aware of Enbridge’s natural gas utility business. That segment witnessed substantial growth earlier this year through several acquisitions.
In fact, Enbridge’s natural gas utility is now the largest on the continent, boasting nearly seven million customers and transporting 9.3 billion cubic feet of natural gas each day.
There’s also Enbridge’s booming renewable energy business.
Over the past two decades, the company has invested over $8 billion into building out a renewable energy segment. Today, that segment comprises over 40 facilities located across Europe and North America.
Those facilities generate a reliable revenue stream for the company, which, like their fossil fuel peers, is backed by regulated contracts.
Enbridge’s renewable energy business currently has a net generating capacity of over 2,300 megawatts, which is sufficient to meet the needs of over 1.1 million homes.
All of the parts provide a very handsome income
Perhaps the best part about investing in Enbridge is the payout that this cash-gushing dividend stock offers. As of the time of writing, Enbridge offers investors a tasty quarterly dividend that carries an insane yield of 7.65%.
In case you’re wondering, that’s one of the highest yields on the market. Investors who allocate $40,000 towards an Enbridge investment can expect to earn an income of over $3,000.
And that’s just in the first year. Enbridge has an established precedent of providing annual bumps to that dividend. The company has carried out that tradition for nearly three decades without fail, averaging well into double-digit territory.
Prospective investors should also note that investors who are not ready to draw on that income just yet can choose to reinvest those dividends. This allows any future income to grow further.
Will you buy this cash-gushing dividend stock?
For prospective investors looking for income and growth, Enbridge is the complete package. The stock boasts one of the best yields on the market and is backed by multiple reliable business segments.
In short, Enbridge is a must-have for any well-diversified portfolio. Buy it, hold it and let this cash-gushing dividend stock provide you with a very healthy income.
The post Beat the TSX With This Cash-Gushing Dividend Stock appeared first on The Motley Fool Canada.
Should You Invest $1,000 In Enbridge?
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The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 32 percentage points. And right now, they think there are 10 stocks that are better buys.
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Fool contributor Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.
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