Single-stock investing still applies today, although owning multiple stocks across various sectors is highly recommended. Diversification, or not putting all your eggs in one basket, reduces risk. However, if I have $7,900 to invest in one company only, I’d pick Enbridge (TSX:ENB) without hesitation. The large-cap energy stock is worth holding for the next 25 years, if not forever.
Energy is a heavyweight sector (second-largest) on the TSX. Oil prices, geopolitical events, and global demand often result in short-term fluctuations. However, a longer holding period can help ride out the spikes and dips and sustain high returns in the future.
Enbridge’s total return in 49.37 years is a whopping +76,763.19%, a compound annual growth rate (CAGR) of 14.4%. Had you invested $10,000 in Enridge 10 years ago, your money would be $21,070.55 today (+110.7%). The energy giant has rewarded loyal investors with hefty gains through the years. It is also the perennial volume leader.
Strength and stability
Greg Ebel, president and CEO of Enbridge, said, “Despite the unique challenges that 2025 has presented, Enbridge is operating from a position of strength and stability and will continue to deliver safe, reliable, and affordable energy to our customers throughout North America and beyond.”
The $136.75 billion energy infrastructure company operate pipelines, transports crude oil, natural gas, and natural gas liquids (NGLs), and generates renewable energy. In the first quarter (Q1) 2025, earnings attributable to common shareholders climbed 59.3% to $2.26 billion compared to Q1 2024.
Focus on strategic priorities
Ebel credits the strong utilization across the asset base for the very solid first-quarter results. He added that Enbridge is on track to exceed its financial guidance for the 20th consecutive year. Management will remain focused on strategic priorities, not so much on U.S. tariffs.
“We don’t expect tariffs to have a material impact on our current operations or deployment of capital. We have secured approximately $3 billion of capital so far this year and increased our secured backlog to $28 billion, all of which is focused on accretive, low-risk projects which extend our growth outlook through the end of the decade,” Ebel added.
Sustained dividend payments
Enbridge has been paying dividends (quarterly payout) for over 70 years. The 3% dividend hike announced on March 1, 2025, was the 30th consecutive year of annual increases. Assuming you invest $7,900 today, the share price is $62.73. Given the 6.01% dividend yield, you will generate $118.70 in quarterly passive income.
Ebel said the solid quarterly results highlight how stable and reliable Enbridge is as an investment during uncertain times. The top-tier energy stock has gained +8.37% in the last six months amid the tariff noise.
Create an energy superpower
Canada’s new prime minister, Mark Carney, is all for building new infrastructure to make the country an energy “superpower.” Ebel said Enbridge is ready to rock and turn the vision into reality. He will take Carney’s word that he’s committed to building energy infrastructure and becoming a conventional and non-conventional energy superpower.
The post-election letter to Carter by 38 Canadian energy executives, including Ebel, called for oil and gas sector reforms. They requested faster project approvals, no emissions cap on oil & gas production, and the industrial carbon tax cancellation.
