TRP:CC - Get Paid $2250 Every Year With Just $30188 Invested in 2 Pipeline Giants

2024-03-04 11:45:00 ET

Dividend investing is one of the best ways to generate a passive income through stock market investing. High-quality dividend stocks can provide you with a much better opportunity to generate a passive income than other avenues.

When investing in dividend stocks, you must look beyond high-yielding dividends. In fact, several high-yielding dividend stocks often have inherent risks with their financials that could make the payouts unsafe in the long run. To generate a passive-income stream through dividend stocks, investors must look for stocks with solid underlying businesses and financials that can support payouts.

To this end, I will discuss two TSX pipeline stocks offering high-yielding yet reliable dividends.

Enbridge

Enbridge ( TSX:ENB ) is a $99.13 billion market capitalization Canadian multinational energy infrastructure company headquartered in Calgary. It owns an extensive network of midstream assets that transport hydrocarbons across North America.

Responsible for transporting a significant portion of all the crude oil and natural gas consumed in the region, it has a resilient business model that provides strong and stable cash flows.

Enbridge stock also has an incredible track record of paying dividends. The stock has been paying dividends to its investors for the last 69 years. It is also a Canadian Dividend Aristocrat, having hiked its payouts for almost 30 years.

As of this writing, Enbridge stock trades for $46.65 per share, providing its shareholders dividends at a juicy 7.85% dividend yield. While the dividend yield is high, its solid underlying business can support the payouts comfortably for years to come.

TC Pipelines

TC Pipelines ( TSX:TRP ) is another multinational pipeline company. Boasting a $55.69 billion market cap, this Calgary-headquartered North American energy company also owns an extensive pipeline network transporting hydrocarbons across Canada, the U.S., and Mexico.

TRP stock is another major dividend stock. As of this writing, it trades for $53.68 per share. At current levels, it pays its investors their payouts at a juicy 7.15% dividend yield. While its dividend yield is high, the company looks set to support its payouts.

The completion of its Coastal GasLink project will be a major tailwind for the company, ridding it of the expenses tied to the project. The next few years will see its capital investment, which was double the intended initial budget, provide a substantial boost to its financials.

It might be the right time to invest in its shares while its dividend yield is inflated.

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Foolish takeaway

Energy stocks with reliable track records of paying shareholders their dividends can be an excellent way to build a passive-income portfolio. Check out how a hypothetical $30,188 worth of shares of ENB stock and TRP stock can deliver over $2,250 in dividends per year through the chart below.

The post Get Paid $2,250 Every Year With Just $30,188 Invested in 2 Pipeline Giants appeared first on The Motley Fool Canada .

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy .

2024