Foolish investors usually prefer to skip the market noise and just park their hard-earned Tax-Free Savings Account (TFSA) savings somewhere solid for the long term. Your investment in well-established, fundamentally strong stocks could not only give you strong returns over time but also reward you with reliable dividend income year after year. And on the brighter side, you don’t have to babysit your investments or second-guess your decision every quarter.
Today, I’ll talk about one such top Canadian dividend stock, Enbridge (TSX:ENB), which has been in the energy sector for generations and continues to invest smartly for the future. Let me explain why it could be the ideal long-term holding for your TFSA.
A rock-solid income stock built for your TFSA
Let’s begin by taking a quick look at what this energy infrastructure giant offers long-term TFSA investors. Enbridge mainly transports oil and natural gas through one of the largest pipeline systems in North America. Alongside this core business, it also owns natural gas utilities and has been gradually increasing its exposure to renewable power projects. These diverse operations generate consistent, contract-backed cash flows that support its reliable dividend program.
After rallying 26% over the last year, ENB stock currently trades at $69.23 per share with a market cap of about $150.6 billion. And its juicy annualized dividend yield of 5.5% makes it even more attractive for consistent income. More importantly, the company has raised its dividend for decades without overextending itself, which is a clear sign of reliability.
Its financial growth trends show more than just stability
In the second quarter of 2025, Enbridge’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) inched up by 7% YoY (year over year) to $4.6 billion, fueled by contributions from recent U.S. gas utility acquisitions, rate settlements, and increased margins in its Ontario gas distribution business. Despite some lower volumes in its Gulf Coast pipelines, its broader business held firm due partly to high system utilization and diversified revenue streams.
As a result, the company’s adjusted earnings climbed over 12% to $0.65 per share. Similarly, its distributable cash flow (DCF) remained stable at $2.9 billion, even with slightly higher maintenance costs and financing expenses. These strong financial growth trends reflected Enbridge’s confidence in its 2025 guidance, with expectations to end the year at the upper end of its range for EBITDA and meet the mid-point of its DCF and earnings targets.
Projects with long-term payoff
Meanwhile, Enbridge is also doubling down on long-term growth projects with smart capital allocation. In fact, its backlog now sits at $32 billion, covering projects that extend across natural gas, crude oil, and renewable power.
In recent months, the company sanctioned multiple new ventures, including the Clear Fork Solar project to support Meta’s Texas data centers and a 40-billion-cubic-foot expansion at its Aitken Creek gas storage facility in British Columbia. Both projects focus on meeting the rising demand for energy across North America.
Built for every market cycle
Even during inflationary periods or rate hikes, Enbridge’s regulated pipeline and gas distribution businesses offer predictability. And now that interest rates are stabilizing, its strong balance sheet and manageable debt levels provide even more breathing room.
Its consistently growing quarterly dividends continue to reward patient investors, and the company has signalled it expects to keep raising dividends, backed by visible cash flow growth. That’s why, if you’re looking for one stock to leave in your TFSA and revisit 10 years later with a smile, ENB could be the one.
