High-yield dividend stocks are a solid investment to build passive income. However, when investing for the long term, say a decade, look for dividend payers backed by companies with durable business models, consistent earnings growth, and a proven ability to reward shareholders through every stage of the economic cycle.
That’s why investors should consider TSX stocks with strong cash flows, resilient operations, and a history of maintaining and increasing their dividends during challenging markets.
So, for investors looking for passive income, here is a TSX stock worth holding for decades. This Canadian dividend stock offers a compelling yield of 4.9%.
Source: Getty Images
A reliable high-yield dividend stock to own for decades
When it comes to dependable dividend investments, Enbridge (TSX:ENB) remains one of the strongest choices. The energy infrastructure giant offers an attractive yield and has a decades-long history of consistent payouts and annual dividend increases. Moreover, its resilient business model positions it to continue rewarding shareholders for years to come.
Enbridge operates one of North America’s largest energy infrastructure networks, transporting crude oil and natural gas through an extensive pipeline system. Because these critical assets are heavily utilized and generate stable cash flows, the company consistently produces strong distributable cash flow (DCF), providing a solid foundation for its dividend.
It has paid dividends for more than 70 years and has increased its payout every year since 1995. Its solid payouts reflect the resilience of its business and cash flow. Notably, almost all of its earnings before interest, taxes, depreciation, and amortization (EBITDA) are generated by regulated businesses or long-term take-or-pay contracts, which limit its exposure to commodity price swings. This predictable revenue stream allows the company to generate steady cash flow regardless of short-term volatility in the energy market, giving Enbridge the confidence to continue raising its dividend.
Enbridge also maintains a disciplined capital allocation strategy. By targeting a dividend payout ratio of 60% to 70% of DCF, the company strikes a balance between rewarding shareholders and retaining enough cash to invest in growth projects, strengthen its balance sheet, and preserve financial flexibility.
With a proven dividend payment and growth history, resilient cash flows, and visibility over future dividend growth, Enbridge remains one of the most dependable high-yield dividend stocks to hold for decades.
Enbridge to pay higher dividends year after year
Enbridge appears well-positioned to continue its dividend growth streak. Thanks to its diversified portfolio of liquids pipelines, natural gas infrastructure, utilities, and renewable power assets, the company will likely benefit from rising energy demand while limiting its exposure to volatile commodity prices.
Enbridge projects 2026 adjusted EBITDA of $20.2 billion to $20.8 billion and DCF per share of $5.70 to $6.10. Moreover, adjusted earnings per share (EPS) are forecasted to grow by 4% to 6%, reflecting the resilience of its regulated and contracted business model.
Looking beyond 2026, Enbridge expects adjusted EBITDA, EPS, and DCF per share to grow by roughly 5% annually. That outlook is supported by a high-quality asset base, long-term contracts, and new projects entering service, all of which should help deliver predictable cash flows and support future dividend increases.
Enbridge’s $39 billion secured capital project backlog will support its future growth. Backed by regulated frameworks or long-term commercial agreements, these projects are expected to drive earnings growth. Meanwhile, the company’s highly utilized liquids pipeline network could continue to generate dependable cash flow.
Enbridge is also investing in high-return brownfield expansion projects that build on its existing infrastructure, allowing it to grow efficiently while keeping capital costs in check. At the same time, rising electricity demand from AI-driven data centres, increasing natural gas consumption, and ongoing investments in renewable energy create additional long-term growth opportunities.
Enbridge’s high yield, sustainable payout, and ability to keep growing its dividend make it a compelling income stock to buy and hold for the next decade.
