5.3% Yield and Still Worth Buying: The Dividend Stock I Keep Adding To

1 hour ago 1

Reuben Gregg Brewer, The Motley Fool

Sat, August 8, 2026 astatine 6:35 PM CDT 3 min read

Enbridge (NYSE: ENB) is simply a elemental concern connected 1 hand, and a analyzable 1 connected the other. But the large communicative present for dividend investors is the reliable 5.3% dividend yield. That output is backed by a dividend that has been accrued annually successful Canadian dollars for 31 years. That history, on with the company's big-picture goal, is wherefore I conscionable support reinvesting the dividend to bargain much shares. Here's what you request to know.

What does Enbridge bash to enactment its 5.3% yield?

Enbridge is mostly classified arsenic a pipeline company, which is wholly reasonable. Oil and earthy state pipelines relationship for much of its revenues than immoderate different concern line. These midstream operations are mostly fee-based, truthful the measurement of vigor moving done the company's strategy is much important than commodity prices. This allows Enbridge to nutrient reliable currency flows successful an manufacture known for volatility.

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Blocks spelling YIELD with coins connected apical of them and a pen successful front.

I'm a reasonably blimpish dividend investor, truthful this is simply a triumph for me. But it is lone fractional of the story. Enbridge's existent extremity isn't to tally pipelines; it is to supply the satellite with the vigor it needs. This is wherefore it besides operates respective regulated earthy state utilities and has a small, but growing, portfolio of renewable powerfulness assets. The institution is shifting its concern successful enactment with the world's displacement toward cleaner vigor options. From a semipermanent perspective, that makes maine acold much comfy continuing to bargain much of the stock.

However, a cardinal origin present is that regulated earthy state utilities make reliable currency flows. And the company's cleanable vigor assets are backed by semipermanent contracts, truthful they nutrient reliable currency flows, arsenic well. Enbridge isn't taking chaotic risks arsenic it shifts its business; it is attempting to recreate the reliable currency flows its pipelines make successful different areas of the vigor sector. That's precisely the benignant of happening that dividend lovers similar maine are looking for.

I person nary program to halt buying until I request the income

When I measurement backmost and look astatine Enbridge, it is the benignant of high-yield vigor banal that I tin ain for the agelong word without losing immoderate slumber on the way. Oil prices volition spike and plunge, but I tin disregard those moves and absorption alternatively connected the reliable dividends I'm collecting. Those dividend checks summation with each caller stock I bargain done dividend reinvestment and with each dividend increase. Indeed, erstwhile I yet halt working, I'm expecting my dividend cheque to beryllium materially larger than it is today.

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