Buy 305 shares of This Super Dividend Stock for $1,150/Year in Passive Income

The TSX has numerous dividend stocks that are reliable investments for generating regular income in all market conditions. Utility giant Fortis, telecom leader Telus, and financial powerhouses like Bank of Montreal and Toronto-Dominion Bank have long been favourites among income-focused investors. Their steady earnings and commitment to returning capital to shareholders make them a must-have in many dividend portfolios.

Furthermore, in the energy sector, companies such as Canadian Natural Resources and TC Energy have consistently rewarded investors with growing dividend payouts over the years. Their ability to maintain and increase distributions through various economic cycles highlights the strength of their operations and cash flows.

While these fundamentally strong companies are reliable investments for income investors, I’d focus here on an energy infrastructure company with a stellar dividend payment and growth history. It offers high and sustainable yield, and is well-positioned to grow its annual distribution for decades. These attributes make it a super dividend stock.

The super dividend stock

Known for rewarding its shareholders with higher dividend payments year after year, regardless of commodity and economic cycles, Enbridge (TSX:ENB) is a super dividend stock to start a worry-free passive-income stream. The energy transportation company has consistently paid its dividend for over seven decades. Moreover, it increased its dividend at a compound annual growth rate (CAGR) of 9% for 30 consecutive years.

While it offers reliable dividend income, Enbridge currently distributes a quarterly dividend of $0.943 per share, which translates into an attractive yield of over 5.7% at the current market price.

Enbridge’s solid payout history reflects the resilience of its business model and its ability to generate steady earnings and distributable cash flow (DCF) despite volatility in commodity prices, driven by macroeconomic and geopolitical challenges.

Notably, 98% of EBITDA stems from regulated or long-term, take-or-pay contracts, which support its cash flow and dividend payments. Further, 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. As nearly 80% of its EBITDA comes from assets with revenue inflators or regulatory mechanisms, its earnings remain protected, driving higher dividend payments.

Enbridge to reward shareholders with a higher dividend

Enbridge remains committed to rewarding its investors with consistent dividend growth in the years ahead. The company’s diversified and resilient business model, supported by its vast infrastructure network and disciplined approach to capital allocation, provides a solid foundation for sustained cash flow. This financial strength enables Enbridge to continue increasing its dividend while maintaining the flexibility to reinvest in future growth.

Enbridge targets a dividend payout ratio of 60–70% of its DCF, a range that ensures a healthy balance between rewarding shareholders and funding new opportunities. This approach allows ENB to pursue strategic projects that can drive long-term growth without compromising its ability to deliver attractive returns.

Beyond the strength in its core operations, Enbridge’s investments in the renewable energy sector position it well to capitalize on growing energy demand led by artificial intelligence (AI)-driven data center projects. It’s also capitalizing on the global energy transition, including opportunities such as coal-to-gas conversions, which align with cleaner energy trends and future demand shifts.

Management expects the company’s earnings and DCF per share to grow at a mid-single-digit pace over the medium term, suggesting that Enbridge’s dividend will likely rise at a similar rate.

Own 305 Enbridge shares to earn over $1,150/year

With exposure to both traditional and next-generation energy opportunities, Enbridge remains a compelling dividend stock to buy and hold for the long term. Moreover, if you invest about $20,000 in Enbridge stock, you’ll own about 305 shares to earn over $1,150 annually in dividends, based on its current quarterly payouts.