A Dividend All Star I’d Buy Over Enbridge Stock Any Day
Written by Amy Legate-Wolfe at The Motley Fool Canada
Enbridge (TSX:ENB) has long been seen as a strong dividend stock by investors. In fact, it acted like a dividend all star in the past! The company was able to continue its growth path of dividends year after year. But investors in Enbridge stock may want to think about going elsewhere.
I certainly did. While Enbridge stock has remained…fine, and certainly a good choice if considering a dividend stock, that’s bound to change. In fact, it already has.
Ditch Enbridge stock for dividends
I used to hold Enbridge stock a few years back. And you know what? After five years, my shares were the same. After falling and recovering, yet only by a little, my Enbridge stock shares remained where they were when I purchased at around $50 per share.
And you know what else? That’s still the case today.
Now we could blame the recent downturn, but the fact remains that Enbridge stock has not dealt the solid returns it has in years past. A slew of projects that were met with barrier after barrier, as well as social environmental issues, have led to problems again and again for the company.
Then, there’s the fact that the world is changing. It’s no longer a slow-and-steady climb towards clean energy production. It’s a speedy rail that’s headed straight for it. All backed by governments, including the White House.
Therefore, today, it’s simply not a good investment, even as a dividend stock with a 6.76% yield. So with shares down 6% in the last year alone, it’s time to move on to another dividend stock.
Instead of investing in oil and gas, consider the growth that comes with renewable energy production. This is the time to get greedy, as clean energy companies will soon be in their hey day. For companies that are diversified in this area, it’s going to be smooth sailing.
That’s the case with Brookfield Renewable Partners LP (TSX:BEP.UN). The company is one of the most diversified clean energy companies out there. It has a foot in the door of practically every type of clean energy project. And it continues to expand through purchases and partnerships.
What’s more, shares are far below where they were in 2021. While this might be seen as a negative, I’d argue it’s time to get in while it’s cheap. The growth came from Joe Biden coming to office, then shrunk back. That growth is bound to return again once we see movement towards clean energy production pick up once again.
Plus, you’ll notice I’m an investor. While my Enbridge stock shares remained the same, my Brookfield stock is still up even after dropping 22% in the last year. Enbridge has grown just 12% in the last decade, compared to Brookfield up 147% in that time as of writing!
And, of course, Brookfield stock also has a dividend to consider. You can pick it up with a 4.73% dividend yield as of writing. Which isn’t as high as Enbridge stock, but for good reason – one is shrinking, whereas the other is growing with no end in sight.
The post A Dividend All Star I’d Buy Over Enbridge Stock Any Day appeared first on The Motley Fool Canada.
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Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners and Enbridge. The Motley Fool has a disclosure policy.