Building a million-dollar Tax-Free Savings Account (TFSA) doesn’t have to involve a dozen different stocks, constant rebalancing, or chasing the latest trend. Sometimes, a single high-quality company with a history of predictable cash flow, dividend growth, and resilience can do the heavy lifting over decades. For many Canadians, that stock could be Enbridge (TSX:ENB).
Why Enbridge?
Enbridge has long been a cornerstone of income-focused portfolios. With a forward dividend yield of around 5.76% and a record of annual increases stretching back nearly three decades, it’s built for steady compounding. Over the past year, the dividend stock climbed more than 21% while delivering strong financial results, showing that it can offer both income and capital appreciation.
The second quarter (Q2) of 2025 underscored that stability. Adjusted earnings rose to $1.4 billion, or $0.65 per share, up from $1.2 billion and $0.58 per share a year ago. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) hit $4.6 billion, a 7% increase, while distributable cash flow held steady at $2.9 billion. These results came alongside a reaffirmation of 2025 guidance, marking the 20th consecutive year of meeting financial targets. In a volatile world, hitting your numbers that consistently is no small feat.
More to come
Enbridge’s success comes from its diversified infrastructure. It’s not just a pipeline giant. Liquids, natural gas transmission, gas distribution, and renewable power all play a role, creating multiple revenue streams underpinned by long-term contracts. That mix helps smooth out fluctuations in commodity prices and demand. Mainline volumes in Q2 averaged three million barrels per day, with the system fully apportioned for most of the year, showing strong customer demand.
The dividend stock also steadily expanded its footprint. In recent months, it sanctioned the Clear Fork Solar project in Texas, a 600 megawatt facility backed by a long-term agreement with Meta. It approved a $300 million expansion of the Aitken Creek gas storage facility in British Columbia, a critical link in the LNG supply chain. It’s growing pipeline capacity in the U.S. Gulf Coast and investing in projects that serve rising industrial and power demand. In total, Enbridge’s secured capital backlog now sits at $32 billion, with a longer-term opportunity set of $50 billion.
From a TFSA perspective, this matters because that backlog represents visible growth in cash flow over the next decade. Management expects adjusted EBITDA to grow 7% to 9% annually through 2026, followed by about 5% growth per year beyond that. Distributable cash flow per share should continue to rise, supporting steady dividend increases. In a tax-free account, reinvesting those growing dividends compounds your returns even faster. And right now, a $50,000 investment could bring in about $2,900 annually!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| ENB | $65.13 | 767 | $3.77 | $2,890.59 | Quarterly | $49,938.71 |
Considerations
Debt is always a factor to watch in capital-intensive businesses, but Enbridge’s balance sheet is in solid shape. The debt-to-EBITDA ratio is 4.7, comfortably within its target range. The dividend stock has been able to finance growth while maintaining credit ratings that keep borrowing costs competitive. And with $9 to 10 billion of annual investment capacity, it doesn’t need to stretch to fund its growth plans.
Risks do exist. Regulatory decisions, construction delays, and shifts in energy policy can affect project timelines and returns. Higher interest rates increase financing costs, and while Enbridge locked in much of its debt, any future refinancing will happen in a higher-rate environment. There’s also the long-term transition to lower-carbon energy, though Enbridge has been proactive in positioning itself for that future through renewable investments and cleaner natural gas infrastructure.
Bottom line
In building a million-dollar TFSA, consistency matters more than quick wins. Enbridge offers that consistency in spades. It’s not the flashiest name on the market, but for investors who want a reliable anchor stock that can deliver growing income year after year, this pipeline and energy infrastructure leader may be the only Canadian stock you truly need. Over time, the combination of yield, growth, and compounding could turn patience into serious wealth.
