Building wealth that lasts beyond your own lifetime requires a different mindset. It means choosing stocks that are not only strong today but are built to survive and thrive for decades – in line with the Foolish Investing Philosophy. While such stocks may not make you a millionaire overnight, they can grow in value and yield attractive dividends year after year with resilience through market cycles.
And when it comes to top buy-and-hold stocks for building long-term wealth, Enbridge (TSX:ENB) is the first name that comes to mind. After rallying by nearly 26% over the last year, ENB stock currently trades at $61.91 per share with a market cap of $135 billion. With an outstanding track record of stability and growth, this energy infrastructure giant has built an empire transporting and distributing oil and gas across North America.
In this article, I’ll break down the qualities that make this stock a top candidate for generational wealth and why it’s worth buying and holding for life.
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A business model built for resilience
In the first quarter of 2025, Enbridge posted record financial results, highlighting the strength of its low-risk, utility-like business model. During the quarter, the company’s adjusted earnings rose 12% YoY (year-over-year) to $1.03 per share. And adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 18% YoY to hit $5.8 billion.
The best part is that this strong performance is not just impressive, but also largely predictable, as over 98% of Enbridge’s EBITDA is either regulated or secured by long-term contracts. That means cash flow is immune to commodity price swings to a great extent, which is one of the biggest reasons this stock is a favourite among conservative investors building portfolios for the long run.
Dividend power you can rely on
Enbridge’s dividend track record is truly top-tier. The company has raised its dividend for 30 consecutive years, and with an annualized yield of around 6.1%, it offers investors a reliable source of income — especially appealing in uncertain economic times. Its latest quarterly dividend was declared at $0.9425 per share, maintaining its status as a dividend knight.
And this isn’t a payout that comes at the cost of growth. The company’s distributable cash flow in the first quarter climbed by 9% YoY to $3.8 billion, which can support both generous dividends and future investments.
Aggressively investing for the future
Another big green flag for a top buy-and-hold stock is its ability and willingness to invest for the future. Enbridge is doing just that.
The company kicked off 2025 with a big growth push, approving nearly $3 billion in new projects in the first quarter. That includes a $2 billion upgrade to its key Canadian Mainline oil system and a 10% stake in the Matterhorn Express gas pipeline in Texas. It’s also backing the Traverse Pipeline to expand gas flow along the U.S. Gulf Coast and boosting capacity out of Canada’s Montney basin with the Birch Grove expansion.
Besides its work on low-risk, long-term projects, Enbridge’s wide moat, inflation protection, and exposure to the high-demand energy infrastructure sector make it an amazing stock to buy and hold for the long term.
