When it comes to steady dividends, several Canadian stocks stand out for their sustainable payouts and ability to consistently increase their distributions regardless of economic cycles. Enbridge (TSX:ENB) is one of those top Canadian companies investors can rely on for worry-free income.
Enbridge has been paying dividends for more than 70 years, reflecting its financial strength and commitment to shareholders. Moreover, the energy infrastructure company has consistently grown its annual distributions. In December 2024, Enbridge increased its quarterly dividend by 3%, bringing it to $0.943 per share. That brings the annual dividend to $3.77 per share, translating into a high yield of around 6% at recent prices.
While Enbridge offers a high yield, it has steadily increased its dividend over time, growing it at a compound annual growth rate (CAGR) of 9% over the last three decades. The company’s sustained dividend growth reflects its operational stability and financial discipline.
Importantly, this dividend growth hasn’t come at the cost of the company’s investments in growth opportunities. Enbridge targets a dividend payout ratio of 60% to 70% of its distributable cash flow (DCF), leaving enough room to fund new infrastructure projects and support future dividend growth. This balance between rewarding investors and investing for tomorrow is one of the reasons the company is well-positioned to pay higher dividends in the coming years.
Enbridge’s consistent dividend payments and solid financial foundation make it a dependable income-generating stock. Before calculating how many shares you’d need to earn $943 annually in dividends, let’s explore why Enbridge is well-positioned to keep growing its payout.
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Enbridge to pay and increase its dividend
Enbridge’s diversified energy infrastructure assets generate low-risk cash flows regardless of commodity and economic cycles, supporting its dividend payouts. Moreover, Enbridge’s assets are supported by long-term contracts, regulatory frameworks, and power-purchase agreements that help it generate resilient earnings and DCF in all commodity and market cycles.
Its extensive liquids pipeline network plays a key role in North America’s energy ecosystem, linking major supply areas to critical demand centers. This positioning translates into high system utilization and paves the way for cost-effective growth through system expansions and operational improvements.
Enbridge’s natural gas transmission business is poised for growth amid increasing demand from gas-fired power plants, especially those supporting data centers and industrial operations. Its regulated model provides predictable cash flow, and the company is expanding its footprint in the Permian Basin to tap into rising gas demand.
On the utility front, Enbridge’s gas distribution and storage segment continues to grow through customer expansion and modernization investments. The growing trend toward electrification and digital infrastructure further supports this trajectory, with data centres driving demand for natural gas power solutions.
Enbridge is also deepening its presence in renewables, leveraging its established foothold in North America and Europe.
Its diversified portfolio will likely generate resilient earnings and DCF, supporting future payouts.
Own 250 Enbridge shares to earn $943/year
Enbridge is a no-brainer passive-income stock and offers an attractive yield. Based on its recent closing price of $62.73 and annual dividend of $3.77 per share, you need to own 250 shares to earn $943 annually in dividends.
| Company | Recent Price | Number of Shares | Dividend | Total Payouts | Frequency |
| Enbridge | $62.73 | 250 | $0.943 | $943 | Quarterly |
