ENB:CC - 2 Dividend Stocks to Double Up on Right Now
2024-01-29 19:00:00 ET
Dividend stocks are great options to augment any portfolio. Often, income-earning stocks are dismissed by new investors, because they are decades out from needing an income. In reality, dividend stocks left to grow through reinvestments can be an awesome source of growth. And here are some of the dividend stocks to double up on right now.
Generate a juicy income with decades of growth
One of the dividend stocks to double up on right now is Enbridge ( TSX:ENB ). Enbridge operates a massive pipeline network that hauls massive amounts of crude and natural gas, making it a vital (and defensive) investment option.
The company is also well-diversified in other areas. This includes operating the largest natural gas utility in North America and a growing renewable energy segment.
In short, Enbridge is a well-diversified company with its tentacles embedded in multiple areas of the energy market. Enbridge is also one of the most defensive options on the market.
Turning to dividends, Enbridge pays one of the best yields on the market . That’s yet one more reason why Enbridge is one of the dividend stocks to double up on right now. As of the time of writing, Enbridge offers a yield of 7.58%.
To put that yield into context, a $30,000 investment will generate an income of just over $2,280 in the first year. I say “first year,” because Enbridge provides annual upticks to that dividend. Enbridge has continued that tradition without fail for nearly three decades.
Investors looking at Enbridge as one of the stocks to double up on right now should note that the stock currently trades down 11% over the past 12-month period. This makes it an excellent time to buy for longer-term gains.
You can bank on this stock to provide growth and income
I would be remiss if I didn’t include one of Canada’s big banks as some of the dividend stocks to double up on right now. And that bank to consider adding to your portfolio is Bank of Montreal ( TSX:BMO ).
BMO is the oldest of Canada’s big banks. As such, the bank has been paying out juicy dividends without fail for nearly two centuries. The bank also has an impressive record of providing annual bumps to that dividend. The only recent gap in that annual tradition was during the pandemic when banks were barred from increasing dividends.
Today, the yield on that quarterly dividend works out to a very tasty 4.64%. This means that investors who drop $30,000 into BMO (as part of a well-diversified portfolio) can expect a first-year income of just over $1,400.
Factor in the expected annual bumps to that dividend, and you have one of the dividend stocks to double up on now and hold for decades.
Another key point is growth, as BMO isn’t just for income-seekers. The bank continues to grow its international footprint, which is centred on the U.S. market.
BMO completed the acquisition of California-based Bank of the West last year. That deal propelled BMO into position as one of the largest banks in the U.S. market. Specifically, the deal provides billions in deposits across the over one million new customers added.
That deal almost means BMO now has hundreds of new branch locations across multiple new U.S. state markets. In short, BMO holds massive long-term potential for investors right now.
Will you buy these dividend stocks to double up on right now?
No stock, even the most defensive, comes without some risk. That’s why the importance of diversifying cannot be understated. That’s also why both Enbridge and BMO, with their incredible defensive moats, cannot be ignored.
Throw in strong growth potential and crazy yields that continue to see annual upticks, and you have two must-have additions to any well-diversified portfolio .
Buy them, hold them, and watch them grow.
The post 2 Dividend Stocks to Double Up on Right Now appeared first on The Motley Fool Canada .
Fool contributor Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy .
2024