Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Forget Dogecoin! This 1 TSX Stock Is Still Climbing

Stock MarketsJul 23, 2021 09:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Forget Dogecoin! This 1 TSX Stock Is Still Climbing

“What goes up must come down.”

While nobody would want this statement to be true when it comes to assets they have invested in, it is almost always the case with investments that rise irrationally high. Such is the case with the cryptocurrency bull market that had attracted many investors since mid-2020 and continued the run till the halfway mark in 2021.

Since then, Bitcoin, Dogecoin, and the wide assortment of decentralized digital currencies have declined and continue to go down. If you are an investor looking to invest in an asset that can provide you with consistent and reliable long-term wealth growth, cryptocurrencies might not be the best asset for you to consider.

Today, I will discuss why it would be better for you to forget about cryptocurrencies like Dogecoin and invest in dividend stocks to achieve your long-term financial goals instead.

Why Dogecoin and other cryptos declined in 2021 Cryptocurrencies enjoyed a strong run during 2020 and the first half of 2021 amid the growing interest from individual and institutional investors. Endorsements from the likes of the co-founder and CEO of Tesla, Elon Musk, and several others provided a substantial boost to the cryptocurrency world.

Dogecoin, a cryptocurrency token that began as nothing more than a joke in 2013, also climbed to all-time high valuations. However, Elon Musk’s comments when he appeared on Saturday Night Live and called the cryptocurrency a hustle resulted in a sudden decline in its prices.

Cryptocurrencies also require a massive amount of computational power to mine, citing concerns of the impact that cryptocurrencies are having on the environment. Many investors took back their support for cryptocurrencies, including Elon Musk, when he announced that Tesla will no longer be supporting Bitcoin payments, unless mining operations become more sustainable.

Invest in a dividend stock instead Many people invest in cryptocurrencies, because it is considered to be an excellent asset class to become wealthy in a matter of a few months, provided that the cryptocurrency market has a strong bull run. Unfortunately, the asset class is unreliable because investors can lose all their gains just as easily as they made them by investing in cryptocurrencies.

Reliable and long-term wealth growth comes from investing in high-quality assets that can also continue providing you with consistent returns. Enbridge (TSX:ENB)(NYSE:ENB) is one such stock to consider if you want to grow your wealth over a period of a few decades. Energy sector companies are enjoying a strong run in 2021.

Enbridge stock could provide investors with a more reliable opportunity to grow their wealth. The stock boasts a more stable dividend profile. Trading for $48.23 per share at writing, Enbridge stock offers its investors payouts with a juicy 6.93% dividend yield. Enbridge has an excellent dividend-growth streak spanning 26 years.

The Canadian midstream energy industry giant generates more stable cash flows than many of its peers due to its unique pipeline network and long-term contracts, making it a more reliable investment than cryptocurrencies if you seek substantial wealth growth that you can rely on.

Foolish takeaway Cryptocurrencies have been in and out of the limelight over the last few years. Considering the substantial amount of volatility and uncertainty involved with cryptocurrencies, it is difficult to look at the asset class as a viable store of wealth or an alternative to traditional currencies. While many investors consider cryptos as a means to become wealthier individuals in a short time span, these assets are proving to be unreliable.

If you want to enjoy substantial wealth growth in the long run without worrying about inexplicable declines in the valuations for assets you own, cryptocurrencies are not the way to go. A portfolio of high-quality income-generating assets like dividend stocks is a much better alternative to cryptocurrencies. Enbridge stock is an ideal stock pick for this purpose.

The post Forget Dogecoin! This 1 TSX Stock Is Still Climbing appeared first on The Motley Fool Canada.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge.

This Article Was First Published on The Motley Fool

Forget Dogecoin! This 1 TSX Stock Is Still Climbing
 

Related Articles

2 Top Canadian Banks to Add for Dividend Income
2 Top Canadian Banks to Add for Dividend Income By The Motley Fool - Sep 16, 2021

There are many reasons investors choose Canadian banks as core portfolio holdings. These banks tend to provide extremely stable returns over time. Additionally, most banks provide...

Top 3 Best-Performing TSX Stocks in 2021
Top 3 Best-Performing TSX Stocks in 2021 By The Motley Fool - Sep 16, 2021

This week, the Toronto Stock Exchange (TSX) announced the 2021 TSX30™ – the 30 best-performing stocks of the past three years. Financial institutions, small-cap...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email