Pipeline company Enbridge Inc (TSX:ENB)(NYSE:ENB) was a relatively stable investment to hold in 2022. It benefitted from rising oil prices and finished the year up around 7%. Those are some decent returns for investors, especially amid a bear market.
The company’s stability is what makes it an attractive option for dividend investors. Over the trailing 12 months, Enbridge has reported net income of $5.5 billion, which equates to a profit margin of 10.5% on the $52.4 billion in revenue it generated during that time frame. It has also brought in $4.2 billion in free cash flow.
At 6.7%, you can earn some solid dividend income from the stock. On a $25,000 investment, that could generate close to $1,700 in dividend income over the course of a full year. Plus, investors are likely to see that income rise over the years as the company has been increasing its payouts for decades. In November, Enbridge announced that it would be increasing its dividend by 3.2%, which marked the 28th consecutive year that the company has been raising its payouts. And there’s no cause for concern as the company states that it is within its target payout range, which is between 60% and 70% of distributable cash flow.
Currently, shares of Enbridge are trading at less than 20 times earnings. With a relatively safe and stable business to go along with a great yield, this is a stock that may be an ideal one to invest in this year. In 10 years, Enbridge has generated total returns (including dividends) of 106%.