Enbridge (TSX: ENB) has long been one of those Dividend Knights that comes up first from a quick internet search. It has provided solid dividends for decades, increasing them throughout any economic backdrop. So it’s no wonder you’re here, wondering if you can create that $1,000 in annual dividends.
The answer is, of course, you can. But there’s another question you should be asking: Should you? Let’s look at Enbridge stock and see whether getting that $1,000 in annual income still looks like a strong investment.
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What’s happening lately
Enbridge stock has gone through a stretch of both challenge and quiet strength over the past few years. Since 2021, the stock has largely traded sideways, caught between rising interest rates that pressured dividend-paying utilities and energy infrastructure stocks, and a steady stream of strong operating results. These continued to prove its underlying business is as stable as ever.
After hitting highs above $56 per share in 2022, Enbridge stock gradually declined to the low-$40 in 2024, yet from there it has taken off. Now, it’s up 70% in the last five years at around $67 per share and 14% in the last year alone.
Operationally, Enbridge stock has performed well through this entire period. Its core pipeline business remains steady, transporting roughly 30% of North America’s oil and 20% of its natural gas every day. Cash flow has been consistently strong, supported by long-term, take-or-pay contracts that protect revenue even when commodity prices fluctuate. The company has also made bold strategic moves, including its 2023 acquisition of three major U.S. gas utilities from Dominion Energy, a deal worth nearly US$14 billion.
Considerations
Despite the pressure on its share price, Enbridge stock has continued to do what long-term investors count on most: grow its dividend. The company has increased its payout for 29 consecutive years, and the current yield sits around 5.6%.
What’s changed most over the last few years isn’t Enbridge’s stability, it’s its positioning. The company has deliberately shifted from being a pure oil pipeline operator to a diversified energy infrastructure leader, with an expanding footprint in natural gas transmission, renewable power generation, and gas utilities. This transition gives Enbridge stock a clearer path to sustainable growth in a decarbonizing world.
Still, some investors have worried about Enbridge stock’s debt load and interest rate exposure, especially in a higher-rate environment. But the company has managed that risk prudently. Roughly 95% of its debt is fixed-rate, shielding it from short-term rate volatility. Management also prioritized selling non-core assets and slowing capital spending to protect balance sheet flexibility. As a result, despite higher financing costs, Enbridge’s leverage remains within its targeted range, and credit agencies have reaffirmed its stability outlook.
Bottom line
In short, Enbridge still looks like a pillar of dividend reliability. It’s not a fast-growth stock, but that’s exactly why investors own it as it pays you to be patient. In fact, here’s what investors would need to purchase today to earn that $1,000 in annual income.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| ENB | $67.23 | 265 | $3.77 | $998.05 | Quarterly | $17,822.00 |
With an unmatched energy infrastructure footprint, stable cash flow, and a nearly three-decade dividend growth streak, Enbridge stock continues to offer one of the most dependable and rewarding income streams on the TSX. For investors seeking stability in uncertain markets, it remains a rock-solid core holding for long-term, tax-efficient income.
