2 Top Dividend Stocks to Buy Now and Forget for a Decade

Here’s why Enbridge (TSX:ENB)(NYSE:ENB) and Suncor (TSX:SU)(NYSE:SU) are two top dividend stocks to consider right now.

| More on:

Through dividend investing, investors can benefit from a passive stream of income, which can be withdrawn or reinvested to allow investors to benefit from the power of compounding. There are many dividend stocks on the TSX to choose from. However, Enbridge (TSX:ENB)(NYSE:ENB) and Suncor (TSX:SU)(NYSE:SU) are two excellent long-term picks to consider right now.

Here’s why I think investors may want to consider owning these stocks and forgetting about them.

Top dividend stocks: Enbridge

As far as size goes, Enbridge is a winner. This company’s market capitalization of $112 billion at the time of writing puts Enbridge into the mega-cap territory as far as pipeline operators go. In fact, Enbridge stands as one of Canada’s largest energy organizations overall.

Accordingly, for those bullish on the energy sector, Enbridge is an excellent way to play this space. That’s because the transportation business tends to be much more stable over time. Enbridge’s rock-solid business model lends well to earnings growth over time.

Fortunately for income-seeking investors, Enbridge has done an incredible job of putting these rising earnings to work. In fact, Enbridge has been one of the best dividend-growth stocks on the market for some time.

While dividend growth has slowed for Enbridge of late, the company’s current yield of more than 6% remains enticing for many investors looking to put fresh capital to work. Indeed, as far as dividend stocks in the energy sector go, Enbridge remains a top pick of mine due to this company’s high current yield and potential for long-term growth.

Suncor

Moving from energy infrastructure companies to producers, Suncor is certainly an interesting option to consider.

Another one of Canada’s largest energy companies, Suncor certainly provides scale. This oil sands producer is well known for its domestic Western Canadian production. However, what may get less attention is the company’s vertically integrated business model.

Besides oil sands development and production, Suncor engages in conventional and offshore crude oil and gas production as well as other ancillary activities. Accordingly, investors looking for upstream, midstream, and downstream operations get the whole deal with this energy stock.

Like Enbridge, Suncor provides a juicy dividend yield. The company’s current yield of 4.1% is nothing to sneeze at. Additionally, as Suncor continues to grow its earnings, I expect more in the way of dividend hikes and share buybacks on the horizon.

Thus, both Enbridge and Suncor are top-tier dividend stocks to consider in the energy space today. Investors thinking long term may want to consider both these companies right now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald owns ENBRIDGE INC. The Motley Fool recommends Enbridge.

More on Dividend Stocks

Make a choice, path to success, sign
Dividend Stocks

Is Fortis Stock a Buy for its Dividend Yield?

Fortis has increased the dividend for 51 consecutive years.

Read more »

Middle aged man drinks coffee
Dividend Stocks

Is Brookfield Stock a Buy, Sell, or Hold for 2025?

BAM stock recently jumped after beating earnings. But is it still a buy, or is it better to wait?

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

3 Top Canadian Utility Stocks to Buy in November

Are you looking for some top Canadian utility stocks to own? Here's a look at three must-have options for any…

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

Is First Capital REIT a Buy for its 4.8% Yield?

First Capital is a REIT that offers you a tasty dividend yield of 4.8%. Is this TSX dividend stock a…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

TFSA Passive Income: 3 Stocks to Buy and Never Sell

Stocks like Fortis Inc (TSX:FTS) are worth holding long term.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

Canadian Utility Stocks to Buy Now for Stable Returns

Given their regulated business, falling interest rates, and healthy growth prospects, these three Canadian utility stocks are ideal for earning…

Read more »

nuclear power plant
Dividend Stocks

The Best Canadian Stocks to Buy and Hold Forever in a TFSA

TFSA investors can buy and hold these Canadian stocks to generate above-average, tax-free returns over the next decade.

Read more »

Person holding a smartphone with a stock chart on screen
Dividend Stocks

Is Telus Stock a Buy for its 7.3% Dividend Yield?

Although the 7.3% dividend yield Telus offers is attractive, it's just one of many reasons why the telecom stock is…

Read more »