Top Dividend Stock Pays 6.3%, Boasts 28 Years of Growth

Top dividend stock Enbridge (ENB) is well-known north of the border, generating the highest yield to income investors, along with Canadian banks and utilities. Perhaps they are on to something.

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Headquartered in Calgary, Alberta, this popular investment for Canadian retirees operates crude and gas pipelines, storage and utilities. It boasts growing ESG credentials as well, operating a renewables segment that focuses on wind turbines.

Enbridge operates the world’s largest crude oil pipeline system, moving 30% of North American petroleum. It also maintains an extensive natural gas pipeline network, transporting 20% of the gas consumed in the United States.

Top Dividend Stock Boasts 68-Year Payout Record

Note: the Canadian Dollar currently equals about 75 cents U.S.

Enbridge makes an interesting investment choice because pipelines generate stable cash flows, allowing this top dividend stock to pay high yields.

The company has paid dividends for more than 68 years, increasing the payout 28 years in a row. In addition, the CAGR (compound annual growth rate) has remained above 10% throughout the period. It just hiked the dividend again, paying 89 Canadian cents per share to shareholders of record Feb. 14. This currently translates into a 6.3% annual yield.

Bullish fundamentals remain intact despite the high payout. Debt is rated a solid “BBB+”, while 95% of Enbridge customers have investment-grade debt.

Growing ESG Credentials

In terms of long-term sustainability, this top dividend stock has committed to a net zero climate target by 2050.

A ton of investment will be needed to achieve that goal but Enbridge had a big head start. Its first onshore wind farm came online 21 years ago.

The energy giant will report fourth-quarter results on Feb. 10. Earnings are estimated at 74 Canadian cents per share on revenue of C$ 13.47 billion.

Enbridge shares are forming a long base with a 47.77 buy point (in U.S. Dollars), as identified by MarketSmith.

The stock is trading right at 200-day moving average resistance. A breakout will set off an early buy signal, even though the buy point is situated than 10% above the moving average.

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