Enbridge (TSX:ENB) just had a strong quarter. And one of Wall Street’s biggest banks thinks there’s more upside ahead.
On Feb. 19, Citi raised its price target on Enbridge to $77 from $75, while reiterating a “Buy” rating on the stock.
The move came after analysts reviewed Enbridge’s fourth-quarter results, which beat expectations and included the announcement of several new projects tied to rising power demand across North America.
For income-focused investors, Enbridge has long been a go-to name. But the growth story behind the dividend is getting stronger and forcing analysts to pay closer attention.
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How did Enridge stock perform in Q4 2025
Earlier this month, Enbridge reported record fourth-quarter and full-year earnings, marking its 20th consecutive year of achieving or exceeding its annual financial guidance.
- Full-year adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) came in above the midpoint of guidance.
- Distributable cash flow (DCF) per share also beat expectations.
The mainline pipeline, Enbridge’s core liquids asset, transported approximately 3.1 million barrels per day on average throughout the year. It was apportioned, meaning demand exceeded capacity, for all but three of the past 12 months.
CEO Greg Ebel highlighted the scale of the company’s growth activity. In 2025, Enbridge sanctioned more than $14 billion in new capital projects across all four of its business units: liquids pipelines, gas transmission, gas distribution and storage, and renewable power.
The company’s secured growth backlog now stands at $39 billion, extending through 2033, a 35% increase since its Investor Day in March 2025.
For 2026, Enbridge reaffirmed guidance for EBITDA between $20.2 billion and $20.8 billion, and DCF per share of $5.70 to $6.10. Given an annual dividend of $3.88 per share, the payout ratio for the TSX energy stock is around 66%.
The TSX dividend stock will benefit from AI tailwinds
One of the biggest themes driving Enbridge’s growth isn’t oil. It’s data.
Artificial intelligence (AI) and data centres are consuming electricity at a rapid pace. That surge in power demand is translating directly into higher demand for natural gas, the fuel that powers much of the grid, especially during peak periods.
Enbridge’s Gas Transmission team is advancing more than 50 potential data centre-related opportunities that could significantly increase demand for natural gas in the upcoming decade.
In January, the company’s Texas Eastern pipeline hit a new record, transporting over 15 Bcf per day.
Enbridge continues to grow its dividend
For dividend investors, the fundamentals here are hard to ignore.
The TSX dividend stock has now raised its payout for 31 consecutive years. The company expects to pay out $40 billion to $45 billion in distributions over the next five years, all supported by regulated and contracted cash flows.
The payout ratio sits in the middle of the company’s 60% to 70% DCF target range, meaning the dividend is well-covered and supported by real cash generation.
Annual investment capacity now stands between $10 billion and $11 billion, and the average return on capital employed for 2025 organic projects is approximately 11%. Notably, renewable projects are generating mid-teen returns.
Enbridge also operates North America’s largest natural gas utility by volume and moves about 30% of all crude oil produced on the continent, according to company data.
With Citi’s updated $77 price target and a Buy rating in place, the question for investors is straightforward: Does a company with 31 years of dividend growth, a $39 billion backlog, and a direct line into the AI infrastructure buildout deserve a spot in your portfolio?
The answer, at least for Citi, appears to be yes.
