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Enbridge vs Suncor: The Dividend Pick I’d Own Through 2026

Enbridge stock currently has a strong dividend yield of almost 5%, with a business that’s ready to meet the energy needs of the future.

Karen Thomas, MSc, CFA

Karen is a stock market enthusiast focused on uncovering those stocks that she believes the market has mispriced. She does this through fundamental and quantitative analysis of companies and their industries, as well as a study of future opportunities and trends. She holds a Masters degree in Finance, the CFA designation, and has over 20 years of experience in the investment management industry. Having worked at a major pension fund, as well as two leading mutual fund firms as an analyst and portfolio manager, she has solid investing expertise which she aims to share with her readers.

Published June 8, 9:00 pm EDT

Key Points

• Both Enbridge (TSX:ENB) and Suncor Energy (TSX:SU) have reduced business volatility through strategic positioning, with Enbridge adding US utility assets for stability and Suncor optimizing its integrated oil and gas value chain.
• Enbridge offers stronger dividend income with a 4.94% yield backed by 31 years of consecutive increases and expects 8% EBITDA growth through 2026, while Suncor yields 2.76% but has delivered 230% stock price gains over five years.
• The author favors Enbridge as the better 2026 buy due to its more predictable cash flows, superior dividend yield, and multiple low-risk growth opportunities across its four core energy infrastructure businesses.

The year 2026 is shaping up to be volatile for the energy sector. Soaring oil prices, geopolitical conflict, and rising uncertainty about how everything will eventually play out are common concerns. In the meantime, supply concerns have driven energy prices and stocks higher. But energy stocks like Enbridge Inc. (TSX: ENB) and Suncor Energy Inc. (TSX: SU) have taken out a lot of this volatility and strive to thrive in all commodity cycles.

This is an attractive proposition for investors. I like both of these names, but let’s take a closer look at which one is the better buy in 2026.

golden sunset in crude oil refinery with pipeline system — Source: Getty Images

Enbridge

As one of Canada’s most stable and predictable energy stocks, Enbridge is a solid pick most years. In 2026, Enbridge is more reliable than ever. This shift was brought about by management’s decision to acquire US utility assets in search of greater reliability and predictability.

Today, Enbridge’s four core businesses include liquids pipelines, natural gas pipelines, gas utilities and storage, and renewable energy. Today, every energy market is experiencing strong demand, and this bodes well for Enbridge. Enbridge stock is benefitting from this in all of its businesses.

And this is reflected in Enbridge’s results and outlook. In the three years ended December 31, 2026, Enbridge’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to increase at a compound annual growth rate (CAGR) of 8%. Furthermore, looking ahead, Enbridge is expecting to post a medium-term CAGR of 5% in its EBITDA, cash flow per share and earnings per share.

Enbridge stock has a 31-year history of annual dividend increases. It currently pays an annual dividend of $2.96 and is yielding a very generous 4.9%.

Suncor Energy

Another energy stock that has made efforts to reduce the volatility of its business and of its results is Suncor Energy Inc. (TSX: SU). Suncor’s oil and gas business is comprised of a large network of downstream locations (refining) as well as an upstream segment (exploration and production). It’s also comprised of approximately 1,800 Petro Canada retail and wholesale locations across Canada.

This means that the company has exposure to different parts of the oil and gas value chain. In recent years, Suncor has tweaked and perfected this integrated business, driving value and productivity in equal parts.

In Suncor’s latest results, this reality has been an obvious highlight. Upstream production was the highest ever for any first quarter and the second-highest quarter ever. In the last three years, Suncor’s production increased 133,000 barrels per day (bpd). This was accomplished without any major acquisitions or projects – it was simply driven by structural improvements in the business and the value chain.

This has brought Suncor stock to new heights as well. In the last five years, Suncor stock has rallied 230% to the current $86.85, and it continues to trade close to all-time highs. Suncor stock also has a strong dividend history, and it’s currently yielding a respectable 2.8%.

The bottom line

While I like both of these energy stocks, I currently favour Enbridge for the fact that it’s the more predictable and defensive option. This, along with its superior dividend yield and many avenues of low-risk growth, leads me to favour Enbridge stock.