The Best Energy Dividend Stock for a Lifetime of Passive Income
Passive income in the form of dividends is a powerful way to create cash you can live off of in retirement. And the best part is that dividends help you to avoid touching your nest egg. If that sounds good to you, then you might want to look at Enbridge (NYSE: ENB), an energy sector stalwart that's readying for the future.
Enbridge isn't exactly an ESG investor favorite, given that roughly 58% of its earnings before interest, taxes, depreciation, and amortization (EBITDA) is tied directly to oil extraction. Another 26% of EBITDA is derived from natural gas drilling. But here's the key: Enbridge is not a wildcatter, it is a pipeline company. That means it generates fees for transporting oil and natural gas, shielding it to some degree from the price swings inherent to these businesses. The demand for oil and natural gas is more important than the price, at least for Enbridge. On top of that, Enbridge also operates a natural gas utility business. This division makes up 12% of EBITDA.
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Source Fool.com
