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Finding those perfect investments to buy now and hold for decades can make the difference between working a few extra years or retiring early. And there is one dividend stock that can help you generate over $470 in passive income right away.
That dividend stock to consider is Enbridge (TSX:ENB), and here’s why it is the stock to buy right now.
Enbridge does a lot of things
Enbridge is best known for its pipeline business. There’s a good reason for that. Enbridge operates the largest and most complex pipeline business on the planet, comprising both crude and natural gas elements.
The sheer volume of crude and natural gas hauled makes Enbridge one of the most defensive stocks on the market. Specifically, Enbridge hauls one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S.
Incredibly, that’s not all that Enbridge does.
The company also operates a natural gas utility as well as a growing renewable energy business.
The natural gas utility, which is the largest in North America, serves over six million customers in both the U.S. and Canada. Utilities are also defensive, thanks to the stable and highly regulated business model.
That same defensive advantage applies to the renewable energy business, too.
Enbridge has invested over $10 billion into renewables over the past two decades, amassing an impressive portfolio of facilities across Europe and North America.
Today, that portfolio consists of over 40 facilities, including solar, wind, and hydro sites. And like the natural gas utility, the renewable facilities are bound by regulated long-term contracts that generate a predictable revenue stream.
That revenue stream allows Enbridge to invest in growth and pay out a generous dividend.
Enbridge pays a huge dividend that keeps growing
One of the main reasons why investors love Enbridge is the quarterly dividend it offers. As of the time of writing, Enbridge offers a very tasty 6.82% yield, making it one of the better-paying dividends on the market.
It also means that prospective investors who drop $7,000 into Enbridge now will start generating an income of just over $470 in just the first year. The reason I say in the first year is because Enbridge provides investors with generous annual upticks to that dividend. In fact, the company has provided an increase every year for three decades and plans to continue that cadence.
That fact alone makes Enbridge a solid option for generating a passive income of $470 in the first year and, thanks to reinvestments, more in the following years.
Enbridge is the dividend stock for you
No stock, even a very defensive option like Enbridge, is without risk. Fortunately, Enbridge has a wide defensive moat and several reliable, diversified revenue streams that minimize that risk.
It also helps that Enbridge is the dividend stock to buy and forget for years with one of the tastiest yields on the market. Here’s how that $470 passive income works out:
| Company | Recent Price | No. of Shares | Dividend | Total Payout | Frequency |
| Enbridge | $54.13 | 129.31 | $3.66 | $473.27 | Quarterly |
In my opinion, Enbridge is a top dividend stock that should be a core holding in any well-diversified portfolio.
