Whether you are a retiree or a young investor, the key to investing in dividend stocks is the same: identify companies that generate cash flows across business cycles while offering a sustainable dividend payout ratio.
One such Canadian dividend stock is Enbridge (TSX: ENB), which ships oil and gas across an entire continent, powers homes through four utility franchises, and still sends shareholders a growing cheque every single quarter.
If you are building a passive-income portfolio, this name deserves a closer look.
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Why Enbridge is a top TSX dividend stock
Enbridge is not a pure oil pipeline anymore. It runs four separate businesses: liquids pipelines, natural gas transmission, gas utilities, and renewable power. Management calls its business model an “all of the above” strategy, and the second quarter of 2026 showed why it works.
Chief Executive Officer Greg Ebel told investors on the company’s July 31st earnings call that Enbridge is seeing “possibly the best environment for growth that we’ve had in recent memory,” pointing to $50 billion of organic growth opportunities through 2030.
In the second quarter (Q2) of 2026, Enbridge grew adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) by $130 million year over year.
Chief Financial Officer Pat Murray said the increase was driven by higher volumes on the Mainline and Seaway pipelines, a favorable rate outcome at East Tennessee, and new rates at several gas utilities.
The company has also sanctioned close to $9 billion in new projects in 2026, working toward a target of up to $20 billion in project approvals through 2027.
Enbridge finished the quarter with debt-to-EBITDA of 5.1 times, though management noted that figure would sit within its target range once currency swings are stripped out.
A dividend stock built for the long haul
Enbridge is among the most popular dividend stocks in Canada due to its tasty yield of over 5% and a dividend-growth streak spanning more than three decades.
Ebel summed up the philosophy behind that streak during the earnings call. “Consistency remains a defining characteristic of our company, demonstrated by 31 consecutive years of dividend increases and a long history of delivering on our commitments to you,” he said.
Enbridge has returned $38 billion to shareholders over the past five years, and management expects to return between $40 billion and $45 billion over the next five, supported by a $41 billion secured capital backlog stretching through the decade.
For a stock yielding around 5.5%, a payout that keeps rising significantly enhances the yield at cost.
Should you buy this TSX dividend stock today?
I think Enbridge belongs on the shortlist for anyone building a passive-income portfolio on the TSX. The combination of a high starting yield, a multi-decade track record of dividend growth, and a clearly funded capital plan through 2030 is difficult to miss.
Analysts tracking the Canadian dividend stock forecast distributable cash flow per share (DCF) to increase from $5.71 in 2025 to $7.15 in 2030. This steady growth estimate should translate to consistent dividend hikes over the next five years.
If ENB stock is priced at 13 times forward DCF per share, it could return 30% within the next three years. After adjusting for dividends, cumulative returns could be closer to 50%.
