This TSX Dividend Stock Down 5% Is a Compelling Choice for a $10,000 Long-Term Investment

Written by Demetris Afxentiou at The Motley Fool Canada

When a correction occurs, investors often focus on the retreating market rather than the opportunity it presents. Specifically, corrections represent an opportunity for investors to pick up TSX dividend and growth stocks at discounted rates.

One such example for investors to look at right now is Enbridge (TSX:ENB).

Most investors are aware of Enbridge, at least in some way. Enbridge is an energy infrastructure giant best known for its lucrative pipeline business.

That pipeline business consists of both crude and natural gas segments. The company hauls massive amounts of both each day. In fact, Enbridge hauls so much crude and natural gas that it makes the company one of the most defensive picks on the market.

Specifically, Enbridge transports one-third of North American-produced crude and one-fifth of the natural gas needs of the U.S. market. The fee that Enbridge charges for the use of that network is also not based on the volatile price of commodities.

In other words, when the price of oil drops (as it is now), Enbridge still generates a stable revenue stream. This adds to the already huge defensive appeal of the company.

Incredibly, that’s not the only thing that makes this defensive TSX dividend stock a top pick for investors.

Enbridge also operates a natural gas utility and a booming renewable energy business. The natural gas business boasts seven million customers in North America and generates a reliable and growing source of revenue.

Turning to renewables, Enbridge has invested billions into the segment over the past two decades. Today, that business includes solar, hydro and wind facilities located across Europe and North America.

And like a traditional utility, those facilities generate a reliable and recurring revenue stream that is backed by long-term, regulated contracts.

Across all its segments, that reliable revenue stream lets Enbridge invest in growth initiatives while paying out a very handsome dividend.

One of the main reasons why investors flock to Enbridge as a TSX dividend top pick is for the company’s juicy quarterly dividend. As of the time of writing, the yield on that quarterly dividend works out to a tasty 6.11%.

This means that a $10,000 investment in this TSX dividend stock will earn an income of just over $660.

That’s not enough to retire on but enough to generate almost a dozen shares through reinvestments. In other words, buying Enbridge now and holding onto it for a decade or more will substantially increase any future income.