Enbridge (TSX:ENB) is a Canada-based energy infrastructure company valued at a market cap of $136 billion. Among the most popular dividend stocks in Canada, Enbridge has raised its payouts each year since 1995. These consistent dividend hikes have meant that Enbridge offers investors a forward yield of 5.8% in May 2025. So, let’s see if you should invest in this blue-chip TSX stock right now.
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Is Enbridge stock a good buy?
Dividend-growth stocks such as Enbridge have generated market-beating gains for shareholders. In the last 30 years, the energy stock has returned 6,500% after adjusting for dividend reinvestments. It means a $1,000 investment in ENB stock in 1995 would be worth close to $66,000 today.
Despite a challenging macro environment, Enbridge posted record first-quarter (Q1) results. The Canadian pipeline giant delivered robust performance across all key metrics as it expanded its North American energy infrastructure footprint.
The Canadian heavyweight reported record adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), distributable cash flow per share (DCF), and earnings per share for Q1. Adjusted EBITDA increased 18% compared to the prior year, while DCF per share rose 6% and earnings per share climbed 12%.
“Despite the unique challenges 2025 has already presented, Enbridge is operating from a position of strength,” said CEO Greg Ebel, highlighting the company’s diversified, utility-like business model that generates predictable cash flows.
The strong results were driven by record volumes on the company’s Mainline system, which transported nearly 3.2 million barrels per day, and contributions from three U.S. gas utilities acquired in 2024. Gas transmission results increased 13% year over year despite asset sales, reflecting revised rates and new projects coming online.
Enbridge reaffirmed its 2025 financial guidance, expressing confidence that tariffs and global trade tensions will have a negligible impact on operations. “We don’t expect tariffs or global trade war to have a material impact on our current operations,” Ebel said, noting that over 98% of EBITDA protection is through regulated or take-or-pay frameworks.
Enbridge continued its aggressive expansion, securing $3 billion in new low-risk projects year to date. Key developments include plans to invest up to $2 billion in Mainline optimization, sanctioning the Traverse Pipeline connecting Texas markets, and acquiring a 10% stake in the Matterhorn Express pipeline for approximately $300 million.
Enbridge’s gas transmission business is well-positioned to benefit from surging natural gas demand driven by data centres, coal-to-gas switching, and LNG exports. The company has identified 35-plus opportunities representing 11 billion cubic feet per day of new electrical demand worth approximately $14 billion through 2032.
The renewable power segment showed strong momentum, with the 130-megawatt Orange Grove solar facility entering service on time and on budget. Combined with other projects, Enbridge expects to place over 500 megawatts of solar into service this year, all backed by investment-grade customers seeking power for data centre operations.
The Foolish takeaway
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Enbridge | $62.73 | 266 | $0.943 | $250 | Quarterly |
Enbridge currently pays shareholders an annual dividend of $3.772 per share. So, to earn $1,000 in yearly dividends, you need to buy 266 company shares worth around $16,686 today. Analysts expect the energy giant to increase its annual dividend to $4.14 per share in 2029. It means your annual dividend payments could rise by 10% to $1,100 over the next four years.
