If you’re interested in using dividend investing to create a passive income stream, building a portfolio of reliable dividend-paying stocks with a strong track record is an excellent strategy.
A stock market downturn can be unsettling. However, for some investors, a dip may actually present a great opportunity. While the stock market always carries risks, a strategy of buying during downturns could yield substantial returns in the future. Market declines can happen for various reasons—sometimes due to broader economic concerns, other times because of sector-specific issues or even just shifts in investor sentiment. The stable dividend payer highlighted below has the potential to help investors generate reliable passive income for decades to come.
Enbridge’s stock price rose 7.4% between February 24 and March 28, showing signs that top energy stocks are rebounding once again. As of this writing, Enbridge shares are trading at $63.62 per share, hovering near all-time highs. Steady dividend stocks like Enbridge have the potential to help investors generate reliable passive income for decades.
As one of the most dependable dividend stocks in the energy sector, this $138.6 billion Canadian energy infrastructure giant has increased its payout every year for the past three decades. At current levels, it offers a 5.9% dividend yield—making the stock an attractive investment worth considering for that reason alone.
Beyond oil and gas, Enbridge’s infrastructure also transports renewable energy. The high demand for energy makes Enbridge a critical business across all market cycles. This is another reason many investors consider Enbridge a reliable stock worth holding in their self-directed portfolios.
Over the past year, Enbridge’s stock price has soared, gaining 30.9% in the last 12 months. What’s behind this significant outperformance? The company’s strategy.
Enbridge has committed $5 billion to ongoing projects and plans to invest another $8 billion. The company has also completed strategic acquisitions in the U.S. natural gas utility market, purchasing three companies to become the largest owner and operator of natural gas utilities in North America.
