When it comes to dependable dividends, several Canadian stocks stand out for their sustainable payouts, and Enbridge (TSX:ENB) is one among them. The energy transportation company has consistently paid and increased its dividend for decades, making it an all-weather income stock.
The energy infrastructure company has been paying dividends for over 70 years. Moreover, it increased its dividend for 30 consecutive years at a compound annual growth rate of 9%. Enbridge currently distributes a quarterly dividend of $0.943 per share, which translates into an attractive yield of around 5.4% at the current market price.
Enbridge’s solid payout history reflects the resiliency of its business model and its ability to generate steady earnings and distributable cash flow (DCF) regardless of economic and commodity cycles. Importantly, by targeting a dividend payout ratio of 60-70% of its DCF, Enbridge ensures it has ample capital to invest in new growth projects while continuing to reward shareholders. Furthermore, it has ample growth opportunities ahead, which suggests that Enbridge will continue to distribute higher dividends in the years to come.
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Enbridge to keep paying and growing its dividend
Enbridge remains committed to paying and growing its dividend. Its stable, low-risk business model will support its future payouts. The company’s large scale, diverse revenue streams, and disciplined capital allocation position it to deliver predictable returns even amid market turbulence. Moreover, Enbridge’s exposure to tariffs is minimal, and nearly 80% of its EBITDA comes from assets with revenue inflators or regulatory mechanisms that protect both earnings and dividends.
Despite the volatility in commodity prices driven by geopolitical tensions, Enbridge’s earnings remain relatively insulated. Notably, 98% of EBITDA stems from regulated returns or long-term, take-or-pay contracts, which support its cash flow and dividend payments.
Its extensive asset footprint connects major supply and demand zones across North America, driving high utilization and positioning the company to capitalize on growing energy needs. Moreover, it is leveraging artificial intelligence (AI)-driven opportunities with more than 10 data centre projects in advanced stages of development. It is also well-positioned to capitalize on energy transitions, including opportunities for coal-to-gas conversions.
On the renewable front, Enbridge is delivering power to leading AI and data centre players. The $900 million Clear Fork project in Texas, contracted under a long-term agreement with Meta, shows its growing footprint in supporting data centre operations. Additionally, the company has completed solar projects backed by power-purchase agreements with large corporations and continues to advance more than $5 billion in additional power-demand projects.
In summary, Enbridge is well-positioned to steadily increase its earnings and DCF per share, which will drive its dividends in the coming years. The company’s management projects mid-single-digit growth in its earnings and DCF in the medium term, implying its dividend could grow at a similar pace.
Own 266 Enbridge shares to earn $1,000/year
Enbridge is one of the most reliable Canadian dividend stocks to start a passive-income stream. Its attractive yield and resilient payouts make it a no-brainer investment for income investors. Further, growth opportunities stemming from AI and energy transition will likely accelerate its growth and drive its share price higher.
Based on its current quarterly payouts, you need to own 266 shares to earn over $1,000 annually in dividends.
| Company | Recent Price | Number of Shares | Dividend | Total Payouts | Frequency |
| Enbridge | $69.43 | 266 | $0.943 | $250.84 | Quarterly |
