Enbridge Could Be the Only Dividend Stock You Need

Enbridge Inc (TSX:ENB)(NYSE:ENB) is one of the best dividend stocks that you can choose to invest in. Currently the share yields a dividend of over 4.7% but the growth is the best aspect of the dividend. In just four years the stock went from quarterly dividends of $0.315 per share in 2013 to now paying $0.61, for an increase of 93%, almost double the payout. This computes out to a compounded annual growth rate of 18%, which means it will take barely four years for the dividend to double.

Just by holding onto the dividend for years you will be able to generate a good quarterly income off the stock. The company has a long history of paying and increasing dividends as well.

You may be concerned that the company is in the oil & gas industry, but consider that in Enbridge’s last quarterly earnings its year-over-year revenue growth was 40% and the company posted a profit of $1 billion. It was also the third consecutive quarter the company turned a profit and only one in the last five saw a (minor) loss.

In the past two years cash dividends have been less than 30% of the company’s cash from operations, and so the payout isn’t it any danger of being cut anytime soon. In fact, the company looks to be in better shape than it was in when oil prices were at their peak. Despite revenue being lower in 2016 than it was in 2014, the company’s net income was 47% higher than it was then. Many in the oil & gas industry have had to learn to be more efficient in their operations, and Enbridge is no exception.