Should Investors Dump Enbridge Stock and Buy This Dividend Knight Instead?

Enbridge (TSX: ENB) has long been a top option for investors. Whether it’s the security of energy production, the increasing dividends, or the stable share growth, it simply looks like a dividend stock that might never slow down. However, it might not be the best buy right now despite all this – that is, if you’re a long-term investor.

Into Enbridge

Enbridge stock has long been a favourite among Canadian dividend investors, but there’s a growing case that it may be a dividend stock investors should quietly move on from. The biggest issue is growth. Enbridge has shifted from a company that regularly delivered meaningful cash-flow expansion to one that now leans heavily on acquisitions and debt just to maintain moderate momentum. Its most recent dividend increase was the smallest in decades, a clear sign that management is running out of room to grow the payout without stretching the balance sheet further.

Debt is the other major concern. Enbridge carries one of the heaviest debt loads on the TSX, and in a high-rate environment, that debt becomes more expensive to service. Every dollar spent on interest is a dollar that isn’t going toward dividend growth, project expansion, or strengthening the balance sheet. The dividend stock’s large U.S. gas utility acquisition added even more leverage, leaving it reliant on selling assets and issuing shares to stay financially flexible.

None of this means Enbridge is on the brink of collapse. After all, it still produces reliable cash flow and maintains one of the largest energy networks in North America. But for investors seeking future growth, stronger balance sheets, and rising dividends, there are cleaner options on the TSX today.

Consider BIP

Brookfield Infrastructure Partners (TSX: BIP.UN) is increasingly becoming the smarter alternative to Enbridge. It offers the kind of long-term growth, diversification, and balance-sheet flexibility that Enbridge simply can’t match anymore. Instead of being tied to one sector, the dividend stock owns essential infrastructure across the world, including data centres, ports, transmission lines, midstream assets, rail networks, and utilities. Where Enbridge struggles to grow meaningfully without taking on more debt, Brookfield constantly rotates capital into higher-return opportunities.

Another major advantage is cash-flow growth. Brookfield Infrastructure has a long history of generating high single-digit to low double-digit funds from operations (FFO) growth. This directly supports steady distribution increases year after year. The partnership targets 5% to 9% annual distribution growth, and it has delivered on that consistently.

What’s more, Brookfield Infrastructure’s balance sheet and funding approach are structurally healthier. BIP.UN raises capital at the project level, uses strategic partnerships, and taps Brookfield’s global financing network to secure better terms. This keeps its corporate leverage more manageable and gives it the optionality to accelerate growth without putting investors at risk. Add in a dividend yield of almost 5%, and it’s still a stellar dividend stock.

Bottom line

In short, Brookfield Infrastructure Partners offers everything long-term investors want, but Enbridge can no longer reliably provide. That’s diversified growth, smart capital allocation, resilient cash flow, and consistent distribution increases. Meanwhile, here is what you could earn from a $7,000 in Enbridge stock versus BIP.

For dividend investors who want both stability and upside, not just a high yield tied to a slow-moving pipeline business, BIP.UN stands out as a far more compelling choice for the next decade and beyond.