The new year is almost here. Given this, I think that now is a good time to review what we can expect for stocks of interest. Enbridge (TSX:ENB) is one of my favourite stocks on the TSX today. This is because Enbridge stock generates predictable cash flows and a generous dividend, all while looking forward to strong growth opportunities. It is a capital-intensive business, but one that’s expected to continue to drive shareholder value in 2026.
With stock markets trading around all-time highs, investors are naturally concerned about valuations. I, for one, have been gearing up my portfolio for possible weakness ahead. That means favouring defensive stocks, increasing my cash and fixed-income weightings, and reducing my weighting in the stock market.
Enbridge: a stock to buy for 2026
Enbridge falls into the defensive category. Its energy infrastructure business has a long history of solid and predictable cash flows and returns. This is made possible by a few key facts. Firstly, a portion of Enbridge’s revenue is regulated, and much of its unregulated business is protected under long-term contracts. Also, as a nice bonus, more than 80% of the company’s earnings have built-in inflation protection. This means that Enbridge’s contracts have inflation escalators as well as protection against rising costs.
So, it is this predictable business that underpins my outlook for Enbridge stock in 2026. This, along with the company’s own positive outlook.
2026: Continued momentum for Enbridge
In 2025, Enbridge has been humming along quite nicely as high utilization is driving record earnings before interest, taxes, depreciation, and amortization (EBITDA). As a result, Enbridge stock posted a respectable year, up 5.4% so far. This follows a spectacular 2024, where Enbridge stock rallied 27%.
So, what’s in store for 2026?
Enbridge’s guidance speaks to a year with continued momentum and investment for long-term growth. 2026 adjusted EBITDA is expected to come in between $20.2 billion and $20.8 billion, for a 4.1% year-over-year growth rate at the midpoint. Distributable cash flow (DCF) is expected to be between $12.475 billion and $12.88 billion, 3.4% higher than last year at the mid-point.
With the release of this guidance, Enbridge also announced its 31st consecutive annual common share dividend increase, effective March 2026. The new annual dividend per share will be $3.88. Enbridge stock’s dividend yield is a very generous 6%.
Growth opportunities
A key takeaway from the analysis of Enbridge is the fact that the company has plenty of growth opportunities in the years ahead, driven by rising demand for North American energy. And management is investing in these opportunities, which will continue to pay off in the years beyond 2026.
For example, Enbridge is expanding its already leading presence in storage facilities. Significant new demand for liquefied natural gas (LNG) is expected over the next five years. But LNG needs proper storage. This is increasing the need for natural gas storage facilities. As a result, Enbridge is set to add significant new natural gas storage near major LNG centres in North America.
The bottom line
Analyst earnings per share expectations for Enbridge in 2026 currently stand at $3.10, which is 6.5% higher than 2025’s earnings estimate. This means that Enbridge stock is trading at 21 times 2026 estimated earnings and 19 times 2027 estimated earnings.
Along with its 6% dividend yield and its low-risk business, this makes for an attractive risk/reward balance for investors in the stock market today.
