Enbridge Inc. (TSX: ENB) is one of North America’s leading energy infrastructure and utility companies. It has a long history of shareholder value creation and predictable operating results. In the last year, Enbridge’s stock price on the TSX has rallied more than 15%. In the last three years, Enbridge’s stock price has rallied 36%.
What does this mean for investors? Is it too late to buy Enbridge stock or is it still a good opportunity?
Let’s look into this.
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Enbridge: Consistent and predictable
For the last 20 years, Enbridge’s results have fallen within its guidance range. This is no small feat, and it speaks to the predictability of the company’s results. And it was designed this way by a management that has worked at lowering the risk profile of the company.
Enbridge is active in four core businesses – liquids pipelines, natural gas pipelines, gas utilities and storage, and renewable energy. These businesses provide Enbridge with a vast footprint and exposure to a diversified set of energy markets. The common thread that all of these businesses have is the nature of their risk profiles. These businesses are either regulated or underpinned by long-term contracts and inflation hedged. This is what gives Enbridge its low-risk, predictable business model.
Enbridge’s dividend: A reason to buy
This strong performance is accompanied by a generous dividend yield of 5.4%. Importantly, this dividend is one that’s backed by Enbridge’s low-risk business. This means that it’s reliable and predictable. The result has been a dividend that has grown annually for the last 31 consecutive years.
For dividend investors, this is a good reason to buy Enbridge (ENB) on the TSX today.
Latest results
In Enbridge’s latest quarter, the fourth quarter of 2025, the company delivered record results. Record full year earnings before interest, taxes, depreciation, and amortization (EBITDA), distributable cash flows, and earnings per share (EPS).
This is attributed to strong energy demand, which resulted in strong volumes, utilization, and of course, cash flows. 2025 EBITDA increased 7% to $20 billion, distributable cash flow increased 4% to $12.5 billion, and earnings per share (EPS) increased 8% to $3.02.
Strong growth opportunities ahead
Finally, let’s review Enbridge’s outlook in order to determine if the stock is a buy or not. To begin, it seems clear that we can expect energy demand to continue to grow. This is being driven by increased power demand, data centres, increased industrial activity, and liquified natural gas (LNG) exports.
For Enbridge, this long-term growth profile is reflected in its energy fund growth backlog, which currently stands at $39 billion. It extends through to 2033. The company is expecting this growth backlog to support 5% EBITDA growth through to the next decade. Enbridge’s balance sheet supports an investment capacity of $10 to $11 billion annually. This will include $6 to $7 billion of organic growth projects and $4 billion of foundational capital that will support utility growth, and gas transmission modernization.
The bottom line
Enbridge (ENB) stock on the TSX remains a buy in my view due to the strong growth expected as well as its predictable results. For dividend investors, Enbridge’s generous dividend yield, which is easily covered and supported provides another strong reason to buy.
