Enbridge (TSX:ENB) has become so reliable that the market finally noticed, and that creates an awkward problem. The better the stock performs, the less of a bargain it becomes.
That certainly doesn’t make Enbridge stock a bad investment. Its pipelines, utilities, and renewable-power assets generate the kind of predictable cash flow dividend investors dream about. Yet with the stock now trading near $80 after an enormous multi-year run, I think BCE (TSX:BCE) could offer more upside for investors willing to stomach a messier turnaround.
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Enbridge remains a dividend giant
Enbridge stock transports approximately 30% of the oil produced in North America and about 20% of the natural gas consumed in the United States. It also serves roughly 7.1 million utility customers, giving the company a collection of assets that would be almost impossible to replicate.
Those assets helped Enbridge generate $5.8 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) during the first quarter. Distributable cash flow increased by $74 million, and management reaffirmed its 2026 guidance, calling for between $5.70 and $6.10 in distributable cash flow per share.
Enbridge also expanded its secured project backlog to approximately $40 billion. That pipeline of future projects supports management’s target of roughly 5% annual growth in adjusted EBITDA, distributable cash flow per share, and earnings per share after 2026.
Add in a $3.88 annual dividend yielding nearly 5%, and it’s easy to see why Enbridge stock remains a dependable dividend stock. The problem isn’t the business. It’s the price investors now need to pay for that dependability.
BCE reckoning
BCE stock, meanwhile, is sitting on the opposite side of the popularity contest. Its shares remain roughly half their previous peak after slow growth, heavy debt, intense telecom competition, and a dividend cut that shattered its reputation as a forever-income stock.
That cut was painful, but it also lowered the annual dividend from $3.99 to $1.75 per share. The new payout still yields approximately 5.8% at a share price near $30, while giving BCE more cash to reduce debt and invest in fibre, cybersecurity, and artificial intelligence (AI) infrastructure.
The early results aren’t exactly fireworks, but they’re moving in the right direction. First-quarter revenue rose 4% year over year to $6.2 billion, while adjusted EBITDA increased 2.9% to $2.6 billion. Free cash flow edged 0.8% higher to $804 million, helping support the new, more realistic BCE dividend.
BCE also has growth opportunities that investors may be overlooking. Bell Business Markets revenue increased 9.7%, helped by 113% growth from AI-powered solutions. Internet revenue climbed approximately 15% after including Ziply Fiber, while Crave subscriptions jumped 25% to 4.7 million.
That gives BCE several potential ways to grow beyond its mature Canadian wireless business, which is exactly what the company needs to rebuild investor confidence.
Foolish takeaway
Enbridge stock is unquestionably the safer choice. Its cash flows are more predictable, its dividend record is much stronger, and investors don’t need to bet on a turnaround. BCE still carries substantial debt; adjusted earnings fell 7% in the first quarter, and higher capital spending could limit free cash flow growth.
However, the market already knows Foolish takeaway is wonderful. Its shares have more than doubled over the last five years and now trade at roughly 27 times earnings. BCE’s problems are equally obvious, but that pessimism has pushed its share price and valuation down to levels that leave far more room for a recovery
Investors prioritizing dependable income should still prefer Enbridge. Yet if I were investing new money for long-term total returns, I’d lean toward BCE. The telecom’s turnaround won’t be pretty, but investors receive a 5.6% yield while waiting, and even a modest recovery in earnings and sentiment could produce considerably more upside.
