If you’re looking for reliable income from your portfolio, you know how rare it is to find a trustworthy dividend stock offering an over 6% yield that also looks sustainable. Many high-yield stocks come with baggage such as inconsistent earnings growth trends, high debt levels, or exposure to volatile sectors. That’s why it’s important to dig deeper.
In this article, I’ll reveal a top Canadian dividend stock I’m buying for its attractive yield and explain why I’m comfortable buying and holding it for decades.
A top dividend stock to hold for decades
That leads me to Enbridge (TSX:ENB), a top dividend-paying stock offering stability and a hefty dividend that I’ve already locked in for the long term. If you don’t know it already, it is a major energy infrastructure firm that operates one of the largest pipeline networks in North America, transporting crude oil, natural gas, and also generating renewable power.
After rallying 24% over the last year, ENB stock is currently trading at $60.32 per share, with a market cap of $131.5 billion. At this market price, it has an impressive 6.3% annualized dividend yield, distributed quarterly.
Latest financials show why I trust this dividend stock
The recent upward move in this dividend stock is mainly backed by its resilient business model and consistent earnings performance. In the first quarter of 2025, Enbridge’s adjusted earnings climbed by 12% YoY (year-over-year) to $1.03 per share. Similarly, its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at $5.8 billion, reflecting a solid 18% YoY jump. That growth was driven mainly by stronger utilization across its pipeline systems, including record Mainline volumes, improved toll structures, and new contributions from recent acquisitions.
In the latest quarter, the energy infrastructure firm also benefited from colder weather conditions and rate increases that helped lift its gas distribution and storage earnings. In addition, Enbridge’s recent U.S. gas utility acquisitions and favourable exchange rate further helped boost its overall results.
Although higher financing costs and increased maintenance capital slightly weighed on Enbridge’s distributable cash flow last quarter, it still rose 9% YoY to $3.8 billion, which could be seen as a good sign for its dividend sustainability.
Projects and capital discipline built for the long term
Interestingly, Enbridge plans to invest up to $2 billion into its Mainline pipeline through 2028 to improve reliability and handle future demand. It’s also expanding its U.S. natural gas footprint with the recently sanctioned Traverse Pipeline and its new 10% stake in the Matterhorn Express. On top of that, the company is diversifying with solar projects like Orange Grove and Sequoia in Texas.
What ties it all together is its disciplined capital allocation. With $9 to $10 billion in annual investment capacity and a payout target of 60% to 70% of distributable cash flow, Enbridge has the tools and the strategy to keep rewarding investors, even when markets get unpredictable.
It’s this combination of reliable cash flow, proven dividend strength, and a clear path for future growth that makes me confident about owning this dividend darling and holding it for decades.
