Valued at a market cap of $140 billion, Enbridge (TSX:ENB) is among the most popular dividend stocks in Canada. In the last 20 years, ENB stock has returned 376% to shareholders. However, after adjusting for dividend reinvestments, cumulative returns are closer to 810%.
Despite these inflation-beating returns, the energy infrastructure giant offers shareholders a tasty dividend yield of 6% in August 2025.
Enbridge is North America’s largest energy infrastructure company, operating through four main business segments, which include the following:
- Liquids Pipelines: Enbridge operates the world’s longest crude oil pipeline system, transporting various grades of oil from production regions across Canada and the U.S. to refineries and markets. This includes the iconic Mainline system that moves Canadian crude to American refineries.
- Gas Transmission: It owns and operates natural gas pipelines and processing facilities, moving gas from production areas to distribution centres and export terminals, including growing LNG (liquified natural gas) facilities.
- Gas Distribution: Enbridge serves millions of residential, commercial, and industrial customers in Ontario and Quebec through its natural gas utility operations, delivering energy directly to homes and businesses.
- Renewable Power: The company generates clean electricity through wind, solar, geothermal, and waste heat recovery facilities across North America.
Enbridge acts as the critical link connecting energy producers with end consumers, earning stable revenues through regulated transportation fees and utility charges while supporting North America’s energy security and transition.
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Is Enbridge stock still a good buy right now?
Enbridge delivered another strong quarter in the second quarter (Q2) that reinforces its position as a premier North American energy infrastructure company, offering investors stability, growth, and exceptional dividend reliability.
ENB set another record for second-quarter EBITDA (earnings before interest, tax, depreciation, and amortization), driven by contributions from acquired U.S. gas utilities and successful rate settlements. Management expressed confidence in finishing the year at the upper end of EBITDA guidance, with strong first-half results positioning it well for continued growth.
Enbridge has increased its dividend for 30 consecutive years, maintaining its dividend knight status. The energy heavyweight expects to return approximately $40-$45 billion to shareholders over the next five years, underpinned by high-quality, low-risk cash flows and a disciplined 60-70% distributable cash flow payout ratio.
Enbridge is perfectly positioned to capitalize on North America’s energy transition and growing power demand. ENB has already sanctioned over $1 billion in power-related projects, including the $900 million Clear Fork Solar project with Meta. The company identified $4-5 billion in near-term power generation opportunities and is ahead of schedule on announcements.
Over 98% of EBITDA comes from regulated returns or long-term take-or-pay contracts, providing remarkable stability. With 80% of EBITDA generated by assets with revenue inflators, the company is well-protected against inflation and market volatility. ENB’s exposure to tariffs is negligible, and Canadian energy delivered via its systems hasn’t attracted tariffs.
Enbridge’s systems connect to 100% of Gulf Coast LNG export capacity and are within 50 miles of 29 new data centres. The Mainline transported three million barrels per day and has been in apportionment for six of eight months this year, demonstrating strong demand for Canadian crude.
What is the ENB stock price target?
Analysts tracking ENB stock forecast adjusted earnings to expand from $2.80 per share in 2024 to $4 per share in 2029. Today, ENB stock is priced at 21 times forward earnings, higher than its 10-year average of 19.2 times.
If the TSX dividend stock reverts to its historical average multiple, it could gain around 28% in the next three years. If we account for dividends, cumulative returns would be closer to 40%.
