One of the things that income investors love is receiving those juicy yearly dividends. That income can provide or even augment an existing income. In the case of investors who aren’t ready to draw on that income, dividend renvesting can allow any future income to grow.
One income stock that can help provide a whopping $2,000 (or more) in yearly dividends is Enbridge (TSX:ENB). Here’s how prospective investors can realize that goal.
Meet Enbridge
Most investors are aware of Enbridge in some form. The energy infrastructure giant is involved in multiple segments of the market, including renewables, utilities, and its pipeline network.
That pipeline business, which includes both crude and natural gas segments, is the largest and most complex system on the planet. Each day it hauls massive amounts of crude and natural gas to points across North America.
Specifically, Enbridge hauls a whopping one-third of all North American-produced crude across its network. The company also hauls one-fifth of the natural gas needs of the U.S. market.
To say that this makes Enbridge a defensive operation would be an understatement. But there’s plenty more to love about the stock that can provide those juicy yearly dividends!
Turning to its renewables business, Enbridge boasts an impressive portfolio of wind, hydro, and solar facilities that are located across North America and Europe. Those facilities generate a recurring and stable revenue stream, backed by long-term regulated contracts.
That reliable revenue stream applies to Enbridge’s natural gas utility too. Thanks to a series of well-executed acquisitions last year, Enbridge’s natural gas utility segment boasts seven million customers in North America.
In addition to the defensive appeal of those segments, Enbridge also boasts a sizable if not insane backlog of projects. The $29 billion worth of projects in that backlog include $23 billion worth of projects coming online within the next two years.
Those growth initiatives, coupled with the defensive appeal of its core segments, make Enbridge a great option for any investor, not just those seeking yearly dividends.
Speaking of dividends, here’s Enbridge’s juicy yield
One of the main reasons why investors continue to flock to Enbridge is for the dividend that it offers. As of the time of writing, that quarterly dividend boasts an impressive yield of 6.2%.
Throw in that impressive defensive moat mentioned above and that makes Enbridge one of the best income-producing stocks on the market.
It also means that investors who can drop $32,000 (as part of a larger, well-diversified portfolio) can expect to generate nearly $2,000 per year in income.
| Company | Recent Price | No. of Shares | Dividend | Total Payout | Frequency |
| Enbridge | $59.99 | 533 | $3.77 | $2,009.41 | Quarterly |
And that’s not even the best part.
For prospective investors looking at Enbridge for those yearly dividends but not ready to draw on that income yet, they can choose to reinvest that income. This allows any eventual future income to grow further on autopilot.
It’s also worth noting that Enbridge has provided consecutive annual upticks to that dividend going back three decades without fail.
Enjoy those yearly dividends
Enbridge is the complete stock. It can offer strong growth in addition to an incredible defensive moat, while paying out one of the best yields on the market.
In my opinion, Enbridge should be a core holding in any well-diversified portfolio.
Buy it, hold it, and watch your income grow.