The most obvious dividend stock to buy is Enbridge (TSX:ENB). But having already accumulated a lot of Enbridge stock, you might be looking for other dividend payers. Three percent dividend growth is not enough in the current inflationary environment. Is there a better dividend stock to consider that can give Enbridge-like dividend security but a higher growth rate, or maybe a dividend reinvestment option?
Behind the slowdown in Enbridge’s dividend growth
Before the pandemic, Enbridge was one of the most loved dividend stocks for its 10% average annual dividend growth rate. Since 2021, this growth rate has slowed to 3%. Even in 2027, the growth rate is expected to increase to 5%. Behind this slowdown is the accelerated capital expenditure in building gas pipelines. The company has been transitioning from oil to natural gas pipelines. The 2022 Russia-Ukraine war altered the oil and gas supply chain and created the need for natural gas storage and liquified natural gas (LNG) exports.
The fresh gas pipeline infrastructure has reduced free cash flow but increased the share price to reflect pipeline expansion. Enbridge has also increased its leverage to make acquisitions. As this infrastructure ages and debt falls, the dividend will increase because most projects will be paid off.
Enbridge is still a hold: Here’s why
Those who already own Enbridge stock should stay invested as it continues to be a stable dividend income source. And if you bought the stock near $40 during the pandemic, you should definitely stay invested. In 2026, the company will pay $3.88 in annual dividends, which equates to a 9% yield for those who bought the stock in the $40–$43 price range.
While Enbridge continues to be a stock to hold for years to come, a new dividend segment is growing fast. Natural gas is becoming an increasingly demanding energy source as many artificial intelligence (AI) data centres are powered by natural gas power plants.
Tourmaline Oil
Tourmaline Oil (TSX:TOU) and TC Energy (TSX:TRP) are the biggest beneficiaries of the natural gas shift. As the country’s largest natural gas producer, Tourmaline Oil’s stock surged 240% between December 2020 and 2025. In these five years, TOU stock has paid special dividends and also grown its dividends as it realized higher prices for natural gas. The company has increased production through acquisitions.
| Year | TOU Base Dividend | Special Dividend | Total Dividend |
| 2025 | $2.00 | $1.05 | $3.05 |
| 2024 | $1.32 | $2.00 | $3.32 |
| 2023 | $1.05 | $5.50 | $6.55 |
| 2022 | $0.90 | $7.00 | $7.90 |
| 2021 | $0.67 | $0.75 | $1.42 |
| 2020 | $0.50 | $0.50 | |
| 2019 | $0.46 | $0.46 | |
| 2018 | $0.37 | $0.37 |
The company has exposure to natural gas price volatility. However, renewed demand for natural gas makes it an attractive stock to buy. Tourmaline has a cost advantage over its Canadian peers. Its maintenance budget and base dividend per share of $2 is fully funded at a gas price of US$2.15/thousand cubic feet (mcf) on NYMEX and C$2.15/mcf on AECO.
Looking at the current market scenario, the company expects to realize a gas price of $3.25/mcf AECO in 2026, hinting at further dividend growth. While Tourmaline is not a dividend giant, it is well-positioned to benefit from the natural gas price rally.
TC Energy
TC Energy is another big beneficiary of the natural gas wave. The stock has surged significantly after spinning off its oil pipeline business. TC Energy has better efficiency than Enbridge in gas pipelines, which makes the former a stock to buy in the current phase of energy transition.
TC Energy can build a gas pipeline at 5–7 times the expected Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), lower than Enbridge’s 6–8 times. In other terms, the pipeline will pay for itself in five to seven years. Although TC Energy has a lower dividend yield of 4.5% and a 3% dividend growth, it offers a dividend reinvestment plan and a higher capital appreciation.
