Investing in blue-chip dividend stocks with growing payouts is a proven strategy to build long-term wealth. It’s essential to identify quality companies that generate stable cash flows across business cycles, allowing them to maintain and even increase dividends over time. In this article, I have identified two Canadian dividend knights set to increase payouts in 2025.
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Enbridge stock
Enbridge (TSX:ENB) is an energy infrastructure giant and among the largest midstream companies globally. While Enbridge is part of a cyclical sector, it has raised annual dividends from $1.86 per share in 2015 to $3.66 per share in 2024. Analysts expect dividends to grow to $3.78 per share in 2025 and $4.14 per share in 2029.
Since December 1995, ENB stock has returned 1,640% to shareholders. If we account for dividend reinvestments, total returns are well over 6,500%.
Enbridge emphasized its position as a dividend aristocrat in its Q earnings call, highlighting 30 consecutive years of dividend increases. The Canadian energy infrastructure company reaffirmed its commitment to sustainable dividend growth aligned with its annual DCF (distributable cash flow) per share growth, which is expected to be around 5% through the end of the decade.
Management pointed to its utility-like business model with over 98% of EBITDA (earnings before interest, tax, depreciation, and amortization) protected by regulated or take-or-pay frameworks as a key foundation for its reliable dividend stream.
This stable cash flow generation supports Enbridge’s investment-grade balance sheet and financial flexibility to grow the business and return capital to shareholders.
Enbridge delivered record Q1 financial results with EBITDA up 18%, DCF per share rising 6%, and earnings per share increasing 12% year-over-year. The energy firm’s ability to maintain 4.5 times to 5 times debt-to-EBITDA while funding more than $8 billion in annual growth capex reinforces its capacity to sustain dividend increases well into the future.
TC Energy stock
TC Energy (TSX:TRP) is another energy infrastructure company with a diversified portfolio of cash-generating assets. TC Energy reported strong Q1 results and announced a $900 million expansion of its ANR pipeline system to serve increasing natural gas demand for data centres and power generation.
The Northwoods project will add 0.4 Bcf (billion cubic feet) per day of capacity under a 20-year take-or-pay contract with an investment-grade utility.
TC Energy reaffirmed its financial outlook, projecting 7–9% EBITDA growth this year and 5–7% annual growth through 2027. It is also expected to place $8.5 billion of assets into service in 2025, currently tracking 15% below budget.
The recently completed Southeast Gateway pipeline in Mexico awaits final regulatory approval, which is expected by the end of the month. Moreover, TC Energy sanctioned the $1.1 billion Unit 5 major component replacement at Bruce Power, extending the unit’s life by 35 years.
Management indicated an increasing pipeline of growth opportunities, particularly in natural gas infrastructure supporting data centeres and power generation, with visibility to accelerate project announcements in the second half of 2025.
TC Energy is forecast to grow its annual dividend from $3.40 per share in 2025 to $3.79 per share in 2028. In the last 30 years, the TSX dividend stock has returned more than 460% to shareholders. After adjusting for dividend reinvestments, cumulative returns are closer to 2,400%.
