Yahoo Finance The Ultimate Energy Stock to Buy With $500 Right Now
Written by Demetris Afxentiou at The Motley Fool Canada
Is your portfolio diversified? While there’s no shortage of great stocks to buy, there are some stocks that boast massive opportunities at the moment. In fact, buying into this ultimate energy stock with just $500 might be enough to start a long-term position.
In case you’re wondering, that stock is Enbridge (TSX:ENB), and here’s why you should invest in Enbridge right now.
Enbridge is one company with many parts
Most investors are familiar with Enbridge. The company operates the largest and most complex pipeline network on the planet. That network, which includes both crude and natural gas elements, provides the bulk of Enbridge’s revenue.
That segment is also incredibly defensive, thanks in part to the massive amounts of crude and natural gas being hauled. In fact, Enbridge hauls a massive one-third of all North American-produced crude. The company also transports one-fifth of the natural gas needs of the U.S. market.
Apart from that core business, Enbridge also operates a growing renewable energy business. This includes over 40 facilities located across Europe and North America, encompassing wind, hydro, and solar elements.
Like any power generator utility, those facilities are bound to long-term, regulated contracts that span decades in duration. This provides an additional defensive revenue stream that leaves room for growth investments and to pay out a healthy dividend.
Speaking of utilities, Enbridge also operates the largest natural gas utility on the continent. This is yet another defensive operation that boasts over six million customers across Canada and the U.S.
Let’s talk about income and that $500
One of the main reasons why investors lock to an ultimate energy stock like Enbridge is for the insane dividend that it continues to offer. As of the time of writing, Enbridge’s quarterly dividend pays out a 6.62% yield.
This means that even a one-time $500 investment left to reinvest over time will show some growth. Throw in additional annual increases of $500 or more, and Enbridge can quickly become a cornerstone of a massive portfolio.
Oh, and let’s not forget that Enbridge has provided annual increases to that already insane dividend for three decades without fail. Investors who aren’t ready to draw on that income can invest it, allowing your eventual income to grow further.
In other words, buy it, hold it, and forget about it (unless you’re buying more of it).
Enbridge is the ultimate energy stock
Enbridge is an energy infrastructure behemoth. The company has its tentacles in multiple areas of the energy sector and continues to invest in growth.
Furthermore, Enbridge’s well-diversified portfolio also boasts an insane defensive moat while managing to pay out one of the best dividends on the market.
In my opinion, Enbridge is the ultimate energy stock to buy and should be a core holding in any well-diversified portfolio.
The post The Ultimate Energy Stock to Buy With $500 Right Now appeared first on The Motley Fool Canada.
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Fool contributor Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.
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