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Most dividend investors likely measure the greatness of a dividend stock by how much it currently yields. If that’s the case, then Enbridge (NYSE: ENB) would probably rate fairly high given that it yields nearly 6%, which is roughly triple that of the average stock in the S&P 500 . However, a stock’s dividend yield should not be the main metric used to measure its greatness. Instead, what matters more is how consistently a company can increase its payout. That’s evident in the data. Companies that have grown or initiated their dividends have generated an average total return of 9.6% over the past several decades, according to a study by Ned Davis Research. Those that maintained their payout, on the other hand, only produced a 6.88% total return, which underperformed the S&P 500’s 7.3% total annual return over that time frame. Given that growth is a better measure of dividend greatness than yield, here’s how Enbridge stacks up. A history of greatness When it comes to paying dividends, Enbridge has excelled over the years. The Canadian pipeline giant has paid its investors in each of the last 64 years. Even better, it has given them a raise for the […]
