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There’s no shortage of great dividend stocks on the market, some of which pay out insane dividends to shareholders. Enbridge (TSX:ENB) is an example of a great TSX stock that pays out a massive 6% dividend.
Here’s a look at that stellar TSX stock and why it belongs in your portfolio right now.
Meet Enbridge
Most investors are aware of part of what Enbridge does, but few can attest to how much this energy infrastructure behemoth does.
Enbridge is best known for its lucrative pipeline segment. That segment includes both crude and natural gas elements, hauling massive amounts of both each day. In terms of volume, Enbridge transports nearly a third of all North American-produced crude and one-fifth of the natural gas needs of the U.S.
As defensive as that sounds, that’s only the tip of the iceberg.
Enbridge also operates one of the largest renewable energy portfolios in Canada. That includes over 40 facilities located across North America and Europe, encompassing solar, wind and hydro facilities.
Those facilities are backed by long-term, regulated contracts, which provide a reliable and recurring source of revenue. So far, Enbridge has dropped over $10 billion into the segment.
The company also operates another defensive business. Enbridge’s natural gas utility provides service to a whopping six million customers across North America. This is yet another defensive business segment that provides a reliable revenue stream.
Why investors love this TSX stock
One of the main reasons why investors continue to flock to Enbridge is for the company’s juicy quarterly dividend. That dividend comes thanks to the growing and recurring revenue stream from Enbridge’s multiple segments.
As of the time of writing, Enbridge offers an insane 6.68% yield, making it one of the better-paying dividends on the market.
Additionally, prospective investors should note that Enbridge has a storied history of providing investors with generous annual upticks to that dividend that goes back three decades without fail.
This means that investors who buy $30,000 of Enbridge stock will generate an income of $2,000 in the first year. Investors not ready to draw on that income yet can choose to reinvest it, allowing it to grow further until needed.
Final thoughts
Enbridge is one of the TSX stocks that checks off all the boxes. The company boasts a diverse and defensive revenue stream that continues to grow. Enbridge also offers one of the best dividends on the market, which is also growing.
Package that together, and you have one of the TSX stocks that is just too hard to ignore right now.
In my opinion, Enbridge is one of the TSX stocks that should be a core holding in every portfolio. Buy it, hold it, and watch it grow.
