There’s no doubt that Enbridge (TSX:ENB) is a top Canadian stock that may have come across your news feed of late. Some of the headlines that may have driven this additional media exposure are probably related to pipelines in general. Indeed, with new administrations in Canada and the U.S. this past year, expectations that pipeline expansions could take place are driving newfound interest in this once-forgotten sector.
Looking at Enbridge’s stock price above, that’s been the case. Let’s dive into why 2026 could be another excellent year for this energy infrastructure giant.
Source: Getty Images
A growth story revived
As mentioned, I think the narrative around potential pipeline expansions (twinnings of existing pipelines) or new pipelines altogether could propel Enbridge higher. If there is a contract awarded, this is the largest player Canada has to offer and one with experience in building out its infrastructure. Bottom line is, I think Enbridge will be the Prime Minister’s first call, if he can get all necessary parties to the table to make a deal.
Absent this growth narrative, strong pricing power with existing contracts coming up for renewal could boost the company’s revenue and earnings growth rates in the years to come. From a fundamentals standpoint, there’s a lot to like about how Enbridge is situated here.
A dividend to die for
Speaking of fundamentals, Enbridge’s whopping 6% dividend yield for a company of its size is impressive.
Enbridge has historically maintained a higher dividend yield than many of its peers in this space. And before the company’s run-up in its share price, this was a stock that was yielding significantly more (as I was pounding the table).
While its yield has come down slightly, I do think Enbridge will likely remain a dividend grower over the long term. The company has indicated it will continue to raise its distribution by around 3% per year, putting the rest of its excess capital toward debt reduction. With new potential projects on the horizon, such a policy has proven to be a smart move.
Stability matters more than ever
With long-duration contracts with its core clientele (mainly oil and gas producers and refiners), Enbridge is a top-tier stock with durable cash flow that’s about as stable as it comes.
There’s no sure thing in the markets. However, Enbridge’s locked-in revenues for years to come does provide unique stability in a world that could become very volatile in the coming years. So, for those looking to hunker down, there are few better places to do so in my books.
