Most investors long for that single high-yielding Canadian Dividend stock they can buy and forget. And while the market does give us plenty of options to choose from, there is one stock that should be on every investor’s shopping list.
That stock is Enbridge (TSX:ENB), and here’s why you should consider this high-yielding Canadian dividend stock right now.
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What does Enbridge offer?
Enbridge is an energy infrastructure behemoth. The company operates the largest pipeline in Canada and the most complex pipeline network in the world. To put the importance of that network into context, Enbridge hauls nearly one-third of all North American-produced crude oil, and one-fifth of the natural gas needs of the U.S. market.
That’s not even the best part of Enbridge’s pipeline business. The company doesn’t charge for use of its network based on the price of the commodity.
In other words, irrespective of the volatile price of oil, Enbridge’s all-important pipeline network continues to generate a reliable and recurring revenue stream. In many ways, it operates in a passive manner much like a road-toll network.
Beyond the lucrative pipeline business, Enbridge also operates one of the largest natural gas utilities in North America. This represents another reliable revenue source for the company that adds to its already profitable business (more on that in a moment).
One final segment to make note of is Enbridge’s renewable energy business. The company boasts one of the largest renewable energy portfolios in Canada, which includes wind, solar, and hydro. Outside of Canada, Enbridge also operates a growing number of international facilities across the U.S., as well as in Europe.
Collectively, the renewable energy business has a net generating capacity of 2,175 MW, which is sufficient to power over 960,000 homes.
Enbridge has invested over $8 billion in the renewable segment in the past two decades. That investment is unlikely to end given the growing importance of renewables. If anything, as demand rises for renewables, that investment will only accelerate further.
Some stellar results, and more on that dividend
Enbridge backs its well-diversified business and stellar growth potential with some impressive results.
In the most recent quarter, the company reported GAAP earnings of $1.3 billion, or $0.63 per common share. By way of comparison, in the same period last year, Enbridge posted earnings of $0.7 billion, or $0.34 per common share.
Turning to income, there’s a good reason why Enbridge is the high-yielding Canadian dividend stock that your portfolio needs. The company offers a quarterly yield that currently works out to a whopping 6.38%. That makes Enbridge one of the better-paying investments on the market.
But there’s still more to love.
I already mentioned the defensive and diversified appeal of Enbridge’s business, but there’s another, often-overlooked factor to take into consideration.
Enbridge has provided annual bumps to that juicy dividend without fail for an incredible 28 years. The most recent uptick was 3.2% for 2023. Given Enbridge’s long-term growth prospects and reliable business model, that trend is unlikely to end anytime soon.
Is Enbridge the high-yielding Canadian dividend stock for your portfolio?
Every investment carries some risk. And during times of volatility, some investors may be less inclined to make changes to their portfolios. Fortunately, Enbridge offers defensive appeal, strong growth potential, and a very juicy dividend.
In short, Enbridge is the perfect long-term investment to buy and forget. In my opinion, Enbridge should be part of every well-diversified portfolio.
Buy Enbridge now and hold it forever.
