Every so often a dividend share arises that is a cow – a share that offers such a mandatory investment case that it becomes too difficult to ignore.
For potential investors, that money cow is currently Enbridge (TSX: ENB), and here is the reason why the energy infrastructure Behemoth belongs firmly in your portfolio.
Did you know that Enbridge is the complete package?
Enbridge is known for its pipeline activities. The pipeline processing generates the majority of Enbridge income, but it is not the only company to transfer.
The pipeline operation consists of both rough and natural gas elements, so that massive quantities of both transport every day. So much so that the segment is often compared with a continental toll road, the collection of passive costs.
To bring that pure volume (and defensive attraction) into context, Enbridge attracts no fewer than one third of all North American crude oil. In terms of natural gas, the company transports a fifth of the natural gas needs of the entire American market.
And that is not even the best part.
Enbridge costs for the use of its network (again, think of Toll Road), but that charge is not Based on the price of the raw material that is drawn. This means that Enbridge, regardless of the way in which the oil prices move, still generates a recurring and stable income flow.
That income stream enables Enbridge to pay a pretty dividend and to earn that cash name (more about it in a moment) and investing in growth initiatives.
The Multi-Billion Dollar Project delay from Enbridge comprises some of those growth initiatives. It is also worthwhile to other Business units that Enbridge operates, which further improves the attraction of this money cow.
These other components include a growing company for renewable energy and the operation of one of the largest utilities in North America. Both are stable income generators that are supported by long -term regulated contracts.
What is even more important, they continue to grow.
What about that dividend?
One of the main reasons why investors love Enbridge and why it is the money cow of the market is the excellent dividend.
Enbridge offers investors a tasty quarterly dividend that it has already paid for an incredible 70 years. Impressive, the company has also collected an incredible 30 consecutive years of annual bumps for that dividend. This makes it one of the best dividend shares on the market.
From the moment of writing, the Enbridge dividend comes out on a very tasty yield of 5.6%.
This means that an investment of $ 30,000 (as part of a larger, well -diversified portfolio) will earn more than $ 1,600 in the first year. Note that investors who are not ready to draw on that income can choose to invest it again, so it can grow until needed.
Buy this money cow now
Enbridge is really the complete package. The company has several, diversified, defensive business segments that generate cash. Enbridge also offers one of the best dividends on the market, with annual increases with three decades.
In my opinion, Enbridge should be a core holding in a well -diversified portfolio.
Buy it, hold it and see how your future income grows.
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