If you’re looking for a good dividend stock to own, it’s important to consider not only yield but a company’s financials and overall stability. Many high-yielding stocks come with risks. Or they’ve been performing poorly and it’s a lower share price that’s pushing their yields higher.
Canadian pipeline company Enbridge (TSX:ENB)(NYSE:ENB), however, doesn’t fall into that category. It has been known for paying a high dividend for a while. And while oil and gas may seem like a risky place to invest in, the stock itself is fairly stable. It averages a beta of less than 0.90, which means that it isn’t as volatile as the overall market. And this year, it’s up around 2%. That’s not amazing, but for dividend investors, that consistency is valuable since it preserves capital. And you’re still collecting a fairly high dividend along the way, which yields 6.1% right now.
Enbridge trades at 23 times its trailing earnings and has a dependable and reliable business that centers around long-term contracts. In the trailing 12 months, it has generated just under $61 billion in revenue with net income totaling around $5.9 billion.
The company has consistently met its financial guidance over the years and there aren’t many surprises that spook investors with the business. Enbridge is one of the better dividend stocks to own, and whether you’re looking for a safe way to collect a high dividend or just want a stock to hang on to for the long term and not worry about, this can be an excellent addition to your portfolio.
