Enbridge Stock: Buy, Sell, or Hold While It Trades Around $65?

Enbridge stock has long been a strong investment, but is that still the case?

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Enbridge (TSX:ENB) has been one of those Canadian giants that doesn’t just weather storms, it quietly grows stronger in them. Over the past year the dividend stock, now trading around $65, climbed roughly 20%, while delivering on exactly what it promised investors. That consistency is why the question of buy, sell, or hold is getting louder right now.

Into earnings

The company’s latest earnings didn’t disappoint. In the second quarter of 2025, Enbridge posted GAAP earnings of $2.2 billion, or $1.00 per share, up from $1.8 billion, or $0.86, a year earlier. Adjusted earnings hit $1.4 billion, with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) up 7% year over year to $4.6 billion. Distributable cash flow stayed strong at $2.9 billion, and management reaffirmed full-year guidance for EBITDA between $19.4 billion and $20 billion, and DCF per share between $5.50 and $5.90. It’s the kind of steady performance that income-oriented investors love to see.

But the real story is in the growth pipeline, literally. Enbridge sanctioned its $1.2 billion-plus Clear Fork Solar project in Texas, which will deliver 600 MW of renewable power to Meta‘s data centres under a long-term deal. It also greenlit expansions to key natural gas assets, including Line 31 and the Traverse Pipeline, while committing $300 million to expand the Aitken Creek gas storage facility in British Columbia. Add in the completed purchase of a 10% interest in the Matterhorn Express Pipeline and an equity partnership on the Westcoast system with First Nations groups, and the company’s secured capital backlog now tops $30 billion.

Staying strong

That investment activity isn’t coming at the cost of financial stability. Debt-to-EBITDA is at 4.7 times, comfortably within the target range, giving Enbridge room to execute its $32 billion near-term opportunity and aim for a $50 billion long-term plan. Management has been vocal about its discipline in choosing projects that complement existing infrastructure, serve growing markets, and deliver low-risk returns.

Dividend seekers haven’t been left out of the conversation. Enbridge’s forward yield sits near 5.8%, backed by a 30-year streak of annual increases. Management continues to target paying out 60% to 70% of distributable cash flow to shareholders, and with $9 to 10 billion in annual investment capacity, the long-term income story remains intact. For those relying on the dividend stock for cash flow, that stability is critical.

More to come

Looking ahead, there are a few watchpoints. Regulatory decisions in Utah and North Carolina could shape the future of Gas Distribution earnings. Execution on large-scale projects like Clear Fork and the Mainline Optimization plan will need to stay on track to support future growth. And broader economic factors like interest rate movements and energy demand trends will still influence sentiment, even with Enbridge’s low-risk commercial framework.

So, what’s the call? For long-term investors, this still looks like a strong hold, and for income investors willing to buy on small dips, it’s arguably an add. The dividend stock trades at a reasonable forward P/E in the low 20s, offering both dependable yield and an expanding growth platform. There’s no obvious reason to sell unless your portfolio needs a shake-up or your risk profile has changed. And right now, a $7,000 investment could bring in about $400 in annual dividends!

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
ENB$65.48106$3.77$399.62Quarterly$6,937.88

Bottom line

Enbridge built a track record of doing exactly what it says it will: delivering reliable returns in all market conditions. If management keeps hitting its targets and projects roll out as planned, the dividend stock should continue to reward patient investors. The choice now is less about whether Enbridge will keep paying and more about how much of it you want in your portfolio.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

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