If there is one blue-chip stock on the Toronto Stock Exchange that income investors should own, it’s Enbridge (TSX:ENB). Valued at a market cap of $168 billion, Enbridge is among the largest energy infrastructure companies globally.
It moves oil and gas through pipelines, sells natural gas to over seven million homes and businesses, and operates a thriving renewable energy business.
At this year’s Annual General Meeting on May 6, Chief Executive Officer Greg Ebel emphasized that 2025 marked the company’s 20th consecutive year of meeting or exceeding its financial guidance.
So, where could Enbridge stock be headed over the next three years? The answer, based on the data and what management is building toward, looks compelling.
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Is Enbridge a good stock to own in 2026?
According to analyst estimates, Enbridge’s normalized net income is expected to climb from $6.58 billion in 2025 to $9.11 billion in 2030, indicating a compound annual growth rate of 6.7%. Net income margins are projected to reach 14.1%, up from 10.1% in this period.
Distributable cash per share is forecast to grow from $5.71 in 2025 to $7.27 in 2030, which should drive future dividends higher. In 2026, ENB stock pays a $3.88 annual dividend per share, translating to a sustainable payout ratio of 65% and a yield of over 5%.
Enbridge declared its 31st consecutive annual dividend increase in December 2025, a 3% raise for 2026. Dividend per share is forecast to reach $4.37 in 2030, growing at roughly 3% per year.
For investors looking for a reliable income stream, this track record is almost unmatched in Canada. And with distributable cash per share growing faster than the dividend payout, the payout ratio remains well covered.
Moreover, if ENB stock is priced at 13 times forward DCF per share, it could return 23% over the next 40 months. If we adjust for dividends, cumulative returns could be closer to 40%.
Net debt is expected to sit around $120.85 billion in 2030, but the net debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio is projected to drop to 4.81 times, down from 5.6 times this year.
That is well within Enbridge’s own target range of 4.5 to 5.0 times, and it is trending in the right direction.
The bull case for ENB stock
At the AGM, Ebel described what he called “a $39 billion project portfolio through the end of the decade.” That includes natural gas pipelines, liquids infrastructure, and renewable power assets.
The company sanctioned $14 billion in new projects last year and placed $5 billion of assets into service. Its gas transmission business secured $4 billion in newly signed projects tied to liquefied natural gas, data centres, and industrial demand.
The mainline liquids system set a record for annual throughput, and the gas utility business, already the largest in North America by customer count, is positioned to benefit from rising demand tied to AI data centers and power generation.
I think Enbridge is one of the best risk-adjusted opportunities available on the TSX today. It is an ideal buy for investors who want steady income, predictable cash flows, and a management team that has delivered on its promises for two decades straight.
Over the next three years, I expect the dividend to keep growing, the project backlog to start generating meaningful returns, and the dividend stock to reward patient shareholders.
