ENB:CC - Could Enbridge Help You Become a Millionaire?
2024-02-05 20:15:00 ET
Every investor aspires to have a million dollars or more in a nest egg by the time they retire. Fortunately, investors who start early, and invest in what becomes a diversified portfolio, can handily meet that goal. There are even a few great stocks on the market right now that can help you become a millionaire when you do retire.
One stock to consider that can help you become a millionaire in retirement is Enbridge ( TSX:ENB ).
Enbridge offers more growth than you may think
Most investors are aware of Enbridge as an energy sector behemoth with its lucrative pipeline business. The company’s crude pipeline business hauls nearly one-third of all North American-produced crude. The natural gas segment transports almost one-fifth of the natural gas needs of the U.S. market.
In other words, it’s a huge, very defensive business that generates the bulk of Enbridge’s earnings.
But that’s not all the company does.
Enbridge also boasts a growing renewable energy business. That segment comprises of over 40 facilities located across North America and Europe. Those assets generate a reliable and growing revenue stream, which is backed by long-term regulated contracts.
Over the past two decades, Enbridge has dropped over $8 billion into the segment, which now boasts sufficient generating capacity to power 1.1 million homes.
But once again, that’s not all Enbridge offers those investors who are looking to become a millionaire.
Enbridge also operates the largest natural gas utility in North America with nearly 7 million customers. The utility, which includes three utility acquisitions completed last year is responsible for delivering a staggering 9.3 billion cubic feet of gas per day.
Enbridge offers a very tasty income
One of the main reasons why investors continue to flock to Enbridge is for the juicy dividend that it offers. As of the time of writing, Enbridge’s quarterly dividend provides a very appetizing yield of 7.70%.
That handily makes Enbridge one of the best-paying dividends on the market. And for those investors who can drop $30,000 into the stock (as part of a larger, well-diversified portfolio), the rewards will be huge.
Specifically, that $30,000 investment will generate a first-year income of just over $2,230. The reason I say first-year income is thanks to another key point why Enbridge can help you become a millionaire. The stock has provided healthy annual bumps to that dividend for nearly three decades without fail.
This means that prospective investors who aren’t ready to draw on that income just yet can reinvest those dividends allowing them to grow.
Let Enbridge help you become a millionaire
No stock, even the most defensive, is truly without some risk, and that applies to Enbridge as well. But despite the well-diversified and defensive business model, Enbridge, like large swaths of the market, is trading down. In fact, over the trailing 12-month period the stock is down over 12%.
If you’re a prospective investor looking to become a millionaire in retirement, that current discount is hard to ignore.
In my opinion, Enbridge is an excellent long-term option that should be a core holding in any, well-diversified portfolio.
The post Could Enbridge Help You Become a Millionaire? 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