In the stock market, it’s prudent to diversify across sectors to avoid major headwinds in a particular sector. But in many cases, the overall return of a portfolio is compromised by diversification. In 2025, Canadian energy pipeline giant Enbridge (TSX:ENB) may be the best bet for investors who intend to or can only buy one stock.
Enbridge is a star stock, with the pipeline business generating steady revenues from both crude oil and natural gas for the energy infrastructure giant. The company transports one-third of North America’s total crude oil production, and natural gas shipments equal one-fifth of the entire U.S. market’s energy needs.
It is important to know that the company continues to generate a recurring revenue stream regardless of changes in crude oil prices, leaving room for growth and dividend.
Undoubtfully, the pipeline business is the first reason investors buy and hold this stock. But the truth is, the company has other highlights as well.
Enbridge has one of the largest renewable energy portfolios in Canada, including solar, water and wind facilities, with a total net generating capacity of 3,481 megawatts (MW), enough to power 1.3 million homes. The company has invested more than $10 billion in this sector over the past two decades.
Another area of interest is the natural gas utility business, which has 7 million customers in the U.S. and Canada and is now one of the largest natural gas utilities in the country. This is another defensive business segment that further provides a stable and growing source of reliable income.
On top of that, one of the main reasons investors love Enbridge stock is the generous dividend. The company has paid a dividend for 69 consecutive years and has increased its dividend annually for three straight decades. With a current dividend yield of 6.06%, it has one of the highest yields among energy stocks. The equivalent of a C$35,000 investment would generate over C$2,130 passive income.
While any stock carries some certain degrees of risks, Enbridge has a number of defensive businesses and a generous yield. Investors who simply want to buy and hold a solid stock can feel comfortable holding Enbridge stock in any diversified portfolio.
