Blue-chip dividend stocks remain attractive to long-term investors as they have showcased an ability to deliver outsized gains over time. One such TSX dividend stock is Enbridge (TSX:ENB), a Canada-based energy infrastructure giant. Valued at a market cap of $140 billion, Enbridge is among the largest companies in the country, and it has returned 1,690% to shareholders in the last three decades. However, if we adjust for dividend reinvestments, cumulative returns are closer to 6,600%.
Enbridge owns and operates the most extensive liquid pipeline system in North America, transporting 30% of the crude oil produced in the continent. It also delivers 20% of the natural gas consumed by more than 170 million people in the United States. Additionally, the company operates North America’s largest natural gas utility by volume and is steadily gaining traction in the renewable energy segment.
So, let’s see if this top TSX energy stock can continue to deliver market-beating returns to shareholders in 2025 and beyond.
Is Enbridge a good stock to own right now?
Last December, Enbridge provided its outlook for 2025, aiming to capitalize on surging global oil consumption and rising demand for natural gas. It projects EBITDA (earnings before interest, tax, depreciation, and amortization) between $19.4 billion and $20 billion, indicating a 9% year-over-year increase.
This growth in EBITDA will be fueled by multiple factors, including full-year contributions from the acquisition of three U.S. gas utilities and $5 billion in secured projects, which were placed into service in 2024. Enbridge also expects strong utilization across its asset portfolio across its four core business segments.
Enbridge announced a 3% increase to its quarterly dividend, raising it from $0.915 per share to $0.9425 per share. It was the company’s 30th consecutive annual dividend increase, reinforcing its status as a Dividend Aristocrat.
In 2025, Enbridge will deploy $7 billion in growth capital which should drive future dividends and cash flows higher. It also plans to issue $9 billion in debt this year to refinance $7 billion in debt maturities. Enbridge aims to maintain a debt-to-EBITDA ratio of 4.5 and five times with a dividend payout ratio of 60% and 70%.
A sustainable payout ratio allows Enbridge to lower balance sheet debt, target accretive acquisitions, and increase dividends further. Analysts tracking ENB stock expect its adjusted earnings to expand from $2.79 per share in 2024 to $3.2 per share in 2025. So, priced at 20.2 times forward earnings, ENB stock might seem expensive as it trades at a premium to consensus price target estimates.
The Foolish takeaway
Enbridge is part of a mature industry, which suggests its dividend-growth rate will decline significantly compared to the past decade. In fact, Bay Street expects the energy giant to increase its dividend per share by 3.1% annually over the next two years, compared to over 10% in the past decade.
Alternatively, Enbridge’s diverse infrastructure portfolio should help it meet conventional and emerging energy needs while delivering consistent returns to investors. Moreover, its tasty dividend yield and a widening base of cash-generating assets should help it deliver inflation-beating returns over the next decade, making the TSX stock a top investment choice right now.
