3 Reasons to Buy Enbridge Like There’s No Tomorrow

There is currently no shortage of major long-term investments for investors to enter the market. such a stock bridging (TSX:ENB), and here’s a look at five reasons to buy Enbridge today.

Reason #1 – Enbridge is too big

Most investors are aware of Enbridge in one way or another. Enbridge is known for its massive pipeline network that includes both crude and natural gas elements.

This pipeline network is huge. In fact, it is the largest and most complex system on the planet and carries large amounts of crude and natural gas to North America.

It carries so much that it accounts for nearly a third of the crude oil produced in North America and a fifth of the U.S. market’s natural gas needs. This is a staggering amount that makes this a must-have inclusion for any investor.

Incredibly, that’s not even the best part.

Enbridge charges for use of this network, but this is not based on the variable price of the goods transported. This means that regardless of how the price of crude oil moves in the market, Enbridge will continue to move it, creating a solid revenue stream.

Reason #2 – Enbridge is more than pipelines (and A lot defense)

One of the most impressive aspects of Enbridge has to be its massive size and reach. Besides its familiar pipeline business, the energy infrastructure giant has other equally impressive segments.

The first segment to consider is Enbridge’s. renewable energy business. This includes approximately 40 solar, hydro and wind facilities located in North America and Europe. These facilities collectively produce enough electricity (2,300 MW net) to power more than 1.1 million homes.

More importantly, they also provide a recurring revenue stream, backed by long-term arranged contracts, similar to traditional services.

Speaking of traditional services, Enbridge also operates the largest natural gas service in North America. This operation serves 7 million customers and provides the company with a recurring and stable revenue stream.

These multiple revenue streams, combined with the necessity and volume Enbridge provides, make Enbridge one of the most defensive options on the market.

Reason #3 – Generate a growing, reliable income

One of the main reasons why investors flock to Enbridge is for its delicious food. dividend The company provides.

As of this writing, Enbridge is offering investors an insane 6.5% yield, making it one of the best returns on the market. As an example, let’s consider a $30,000 investment in Enbridge.

For this initial investment, investors can expect to receive just over $1,900. Investors who are not yet ready to benefit from this income can reinvest, allowing the final income to increase through reinvestment.

Perhaps best of all, potential investors should note that Enbridge has provided annual increases in this dividend for three decades. This factor alone is one of the main reasons to buy Enbridge as a buy-it-and-forget-it candidate.

More reasons to buy Enbridge

No investment, even the most defensive investment, is without some risk. Fortunately, Enbridge offers investors the perfect blend of growth and income-generating potential, making it an excellent choice for any portfolio.

In my opinion, Enbridge is a top stock that should be a core holding in any well-diversified portfolio.