Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
There’s no shortage of great stocks on the TSX that are suitable for long-term investments, which can provide both stable dividend income and also decent growth. Even for new investors, there are solid investment options, and Canadian energy infrastructure giant Enbridge ( TSX:ENB ) is a good example.
Enbridge is a household name with a vast network of crude oil and natural gas pipelines. In fact, the company delivers almost one-third of all the crude oil produced in North America and one-fifth of the natural gas needed by the U.S. market.
What’s most interesting to investors is that Enbridge charges a fee for the use of its pipeline network, but it’s not based on price fluctuations of the commodities it transports. This means that no matter how crude oil prices fluctuate in the market, the company can still rely on its pipeline business to generate a solid revenue stream.
But Enbridge isn’t just a pipeline company; the energy infrastructure giant has several other equally impressive business units as well. First and foremost is the renewable energy business, which consists of about 40 solar, hydro and wind facilities spread across North America and Europe. The total capacity of these facilities (2,300 megawatts net) is enough to meet the electricity needs of more than 1.1 million households.
In other words, Enbridge is able to generate recurring revenue streams supported by long-term regulatory contracts, just as traditional utilities do. In addition, Enbridge operates the largest natural gas utility in North America, serving 7 million customers, a business that provides another recurring and stable revenue stream for the company.
Another key reason Canadian investors love Enbridge stock is the company’s impressive dividend, which currently yields 6.5%! This equates to an initial investment of C$30,000, with investors receiving over C$1,900 in dividend income! The company has raised its dividend every year for nearly three decades non-stop. This alone constitutes a key reason to buy Enbridge stock.
While any investment is risky, Enbridge offers investors the perfect combination of growth and passive income and should be a core holding in any diversified portfolio.
