Enbridge (TSX:ENB) and Telus (TSX:T) have long been popular with Canadian income investors because of their attractive dividend payouts. But their dividend stories now look quite different.
Enbridge continues to increase its distributions, while Telus recently reduced its dividend by 55%. The telecom company is focusing on strengthening its balance sheet and reducing debt
For dividend investors, Telus’s dividend cut is significant. The move also changes the investment case. Telus is no longer primarily a dividend-growth story. Instead, the reset is designed to make the payout more sustainable while giving the company greater financial flexibility.
With that in mind, let’s take a closer look at the sustainability of Enbridge’s and Telus’s dividends and determine which stock could be the better dividend stock to own through 2030.
A person stands in front of several doors representing different U.S. stock options for Canadian investors.
Enbridge remains a worry-free dividend growth stock
Enbridge is one of the most dependable dividend stocks. Its ability to grow its dividend through different economic conditions and commodity-price cycles makes the stock attractive to income investors.
Enbridge has been paying dividends for over 70 consecutive years and increased its annual distributions every year since 1995. The consistency of its payouts reflects the stability of its underlying cash flows and provides confidence in future payouts.
Enbridge benefits from its highly diversified operations. Its operations across liquids pipelines, natural gas infrastructure, gas utilities, and renewable power reduce the reliance on any single business or energy market.
In addition, much of its cash flow comes from regulated operations and long-term, take-or-pay contracts, while its pipeline network operates at high utilization rates. This structure limits direct exposure to commodity price fluctuations and allows Enbridge to generate relatively predictable distributable cash flow (DCF).
Enbridge’s capital allocation strategy further supports the dividend. It targets a payout ratio of about 60% to 70% of DCF, allowing it to hike the dividend while retaining capital for growth investments.
The strength in its core businesses and a secured capital backlog of roughly $41 billion positions it well to grow its DCF and earnings per share at a mid-single-digit pace in the medium term. This will enable Enbridge to continue increasing its dividend at a similar pace over time.
Telus’s payouts look sustainable now
Telus has adopted a more defensive capital-allocation strategy, prioritizing balance sheet strength over near-term shareholder distributions. Its dividend reduction is expected to generate roughly $2.7 billion in savings through 2028, which it will use to lower debt.
Telus aims to lower net debt-to-adjusted EBITDA to approximately 3 times or below by 2028, from 3.5 times in the second quarter of 2026.
Telus has also reduced its payout target to 45%–60%, from 60%–75%, creating a larger cash buffer to absorb volatility and fund strategic investments. The lower dividend payout should improve financial flexibility and strengthen long-term dividend sustainability.
Beyond deleveraging, asset monetization could provide further support for its balance sheet. Operationally, customer growth, strong retention, and cost-transformation initiatives should support its bottom line. Telus is increasingly directing capital toward higher-return areas where it has competitive advantages, including wireless, PureFibre, and digital and AI infrastructure.
Overall, lower capital intensity, disciplined investment, and a more conservative payout policy could enhance Telus’s financial resilience while supporting sustainable long-term growth.
The bottom line
Overall, Enbridge appears better positioned for investors whose primary objective is dependable and steadily growing income through 2030. Its long dividend-growth record, regulated and contracted cash flow, and a sustainable payout ratio make it a reliable investment.
Telus could deliver stronger total returns if its restructuring succeeds, but that thesis carries more execution risk because the company is still working through elevated leverage and intensifying competition.
For a long-term dividend portfolio, Enbridge therefore looks like the more attractive choice, while Telus is better viewed as a higher-risk income and recovery opportunity.
