From time to time, a dividend inventory that could be a money cow emerges – a inventory that provides such a compelling funding case that it turns into too exhausting to disregard.

For potential traders, that money cow proper now could be Enbridge (TSX:ENB), and right here’s why the power infrastructure behemoth belongs firmly in your portfolio.

Do you know that Enbridge is the entire package deal?

Enbridge is understood for its pipeline enterprise. The pipeline operation does generate the majority of Enbridge’s income, nevertheless it’s not the one enterprise to boast about.

The pipeline operation consists of each crude and pure fuel components, hauling huge quantities of each every day. A lot in order that the phase is usually in comparison with a continental toll highway, gathering passive charges.

To place that sheer quantity (and defensive attraction) into context, Enbridge hauls a whopping one-third of all North American-produced crude. Turning to pure fuel, the corporate transports one-fifth of the pure fuel wants of your entire U.S. market.

And that’s not even the most effective half.

Enbridge prices to be used of its community (once more, suppose toll highway), however that cost is not primarily based on the worth of the commodity being hauled. Which means that no matter which approach oil costs transfer, Enbridge nonetheless generates a recurring and secure income stream.

That income stream permits Enbridge to pay out a good-looking dividend and earn that money cow identify (extra on that in a second) and put money into development initiatives.

Enbridge’s multi-billion-dollar challenge backlog contains a few of these development initiatives. It’s additionally value mentioning the different enterprise models that Enbridge operates, which additional improve the attraction of this money cow.

These different components embrace a rising renewable power enterprise and working one of many largest pure fuel utilities in North America. Each are secure income mills backed by long-term regulated contracts.

Extra importantly, they proceed to develop.

What about that dividend?

One of many foremost the explanation why traders love Enbridge and why it’s the money cow of the market is its very good dividend.

Enbridge affords traders a tasty quarterly dividend, which it has been paying out for an unimaginable 70 years. Impressively, the corporate has additionally amassed an unimaginable 30 consecutive years of annual bumps to that dividend. This makes it one of many finest dividend shares available on the market.

As of the time of writing, Enbridge’s dividend works out to a really tasty 5.6% yield.

Which means that a $30,000 funding (as half of a bigger, well-diversified portfolio) will earn over $1,600 within the first 12 months. Be aware that traders who aren’t prepared to attract on that earnings but can select to reinvest it, permitting it to develop till wanted.

Purchase this money cow now

Enbridge actually is the entire package deal. The corporate boasts a number of, diversified, defensive enterprise segments that generate money. Enbridge additionally affords among the best dividends available on the market, with three many years of annual will increase.

For my part, Enbridge ought to be a core holding in any well-diversified portfolio.

Purchase it, maintain it, and watch your future earnings develop.