Canadian investors, the new year is almost upon us. Before the start of another year of trading, many investors are considering what stocks to invest in during another year of trading. The TSX has no shortage of high-quality blue-chip stocks that you can add to your self-directed portfolio. Among them, Enbridge (TSX:ENB) is my favourite stock to consider.
The integrated energy company generates predictable cash flows. The stock pays investors generous dividends and has increased payouts for around three decades. The underlying business segments look solid, and it has robust fundamentals. That said, the stock market is close to new all-time highs, and that leads to concerns about overvaluation.
Today, we will take a closer look at Enbridge stock to see why it might be an excellent investment to consider as 2026 starts.
Enbridge
Enbridge is a $141.04 billion market-cap giant in the Canadian energy industry. The company is responsible for transporting a lot of the hydrocarbons produced and consumed across North America. Its extensive network of midstream assets transports crude oil and natural gas across Canada and the United States. Besides that, Enbridge also has a growing renewable energy segment to future-proof it for a greener energy industry.
However, Enbridge is also a defensive play due to its dabbling in the utilities sector. After completing a slew of acquisitions, Enbridge has become one of the largest natural gas utility companies in North America. It is also the biggest natural gas distribution company in Canada.
Most of the company’s revenue comes from assets in rate-regulated markets. Around 80% of its unregulated business revenue also has substantial protection through long-term contracts. Combined with the cyclical boost in the traditional energy sector, the business is solid and looks well-positioned to continue exhibiting strength in the coming year.
The coming year
High utilization of its midstream network has been a major tailwind for Enbridge. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) have hit record levels. As of this writing, Enbridge stock trades for $64.66 per share, up by 14.42% from its 52-week low. The stock looks poised to deliver another strong year of trading on the stock market.
Enbridge has expectations for its adjusted EBITDA for 2026 to come in between $20.2 billion and $20.8 billion. The company’s management also anticipates that its distributable cash flow (DCF) will be as high as $12.88 billion. The release of this guidance tells investors that the company is confident in its performance in the coming year. The company also announced another dividend hike that will come into effect in March 2026.
Foolish takeaway
Enbridge stock has shown plenty of growth over the decades that it has been trading on the stock market. The rising demand for energy from North America in the coming years means Canada’s thriving energy industry will likely see a massive boom in 2026 and beyond. Enbridge stock pays its investors $0.97 per share each quarter, translating to a juicy 6% dividend yield. It might be the right time to invest in its shares to lock in the high-yielding dividends.
