If you’re looking for dividend stocks, chances are you’ve already heard about
Enbridge (TSX:ENB)(NYSE:ENB). There’s good reason, as the company offers a 7.22% dividend yield that’s seen 26 years of consecutive growth. During the last decade, those dividends have grown at a compound annual growth rate (CAGR) of about 14%.
And shares have been rebounding with oil and gas prices. The pipeline company has seen an uptick in usage, and that should continue for years to come. Not that it needs it. The company has long-term contracts that will support share and dividend growth for decades. Meanwhile, it continues to grow through billions set aside in growth projects.
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If you’re an investor waiting for another market bottom, you could be waiting another decade. While there’s no crystal ball, the growth opportunities we saw last year are likely behind us. That means it’s time to come up with a new strategy, because waiting for a market bottom is no strategy at all.
Instead, as the market recovers, investors should be thinking about dividend stocks again. These stocks provide investors with passive income every quarter or even every month. You can use those funds to pay down debt, buy household items, or simply reinvest. That could turn even $5,000 into a retirement nest egg given enough time!
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We could all use extra income right now. After a year of craziness, the market is starting to show at least some signs of potentially stabilizing. That means it’s the best time to get in on stable stocks. Dividend stocks are the perfect place to start.
If you have a Tax-Free Savings Account (TFSA), these stocks can provide you with stable income every month, all tax free! You can use that for loan payments, groceries, or simply to reinvest in your already strong watchlist.
So, if this is what you’re looking for (and who isn’t?), then let’s start with three solid options.
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