A number of my top picks in recent years have not seen much movement, if any, for good reason. Economic growth remains, and the focus among many investors looking for "quick wins" is to look to high growth sectors to receive returns that outperform the market.
Companies that offer very good dividend yields, and are defensive plays, have not yet been attacked by investors of all shapes and sizes yet.
Shares of Canadian energy company Enbridge Inc. (TSX:ENB)(NYSE:ENB) have remained at the same level seen in 2013, discouraging many investors who have bought and waited, seeing no capital appreciation for six years, as the stock market has continued to climb over this period of time.
Of course, having more "steady Eddies" in your portfolio relative to high-growth stocks will undoubtedly come in handy when tides turn, and investors are in search of companies with cash flows that are immune to the whims of Mr. Market.
That being said, waiting for long periods of time is an excruciating game for many, so Enbridge may simply be too boring for a good chunk of the population.
I remain steadfast in my belief that companies like Enbridge stand to hold their value, or perhaps even increase, in times of great economic stress for the reasons mentioned above.
For investors looking to get defensive, at these levels, I think you're getting a steal. A 6.6% dividend yield is nothing to sneeze at, and with the dividend tax credit, Canadian investors can sit pretty and wait, if you're patient enough.
Invest wisely, my friends.
