Enbridge Inc. (TSX: ENB) has fallen 15% from its 2026 highs. Yet, the company continues to chug along. In fact, Enbridge stock continues to report strong results while investing for growth. The energy industry is enjoying spectacular growth, as demand from hyperscalers, utilities, and liquified natural gas is creating the best fundamentals for the energy industry in recent history.
Over the years, Enbridge stock has proven itself to be a reliable and safe income provider for shareholders. This is why I am buying it now that it’s on sale once again.
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Enbridge stock: A defensive business
Enbridge is a leading North American energy infrastructure company. The company owns US utilities, as well as North American pipelines, renewable energy facilities, and storage facilities. These businesses provide Enbridge with cash flows that are highly regulated and/or benefit from long-term contracts. As such, the cash flows are highly predictable and safe.
Infrastructure demand in North America is growing as government policies have been increasingly supportive of drilling to meet growing energy demand. Natural gas is benefiting from strong fundamentals across data centres, liquified natural gas (LNG), and utilities. Enbridge is hard at work connecting data centres with the power they need and LNG export terminals to Canadian natural gas.
Enbridge’s utility segment is a source of growing, stable, and predictable returns and growth. These franchises have been benefiting from rate increases and strong a strong return on capital for Enbridge.
Enbridge stock performance and dividends
Over time, Enbridge stock’s performance and dividends have been a testament to the company’s long-term success and stability. In the last 30 years, Enbridge stock has rallied almost 1,384% and its dividend per share has increased 1,400% to the current $3.88. In fact, the company has increased its dividend for 31 consecutive years.
Looking ahead, it’s my opinion that we can expect more of the same from Enbridge stock. And the company’s 2026 guidance reflects this. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to come in between $20.2 billion and $20.8 billion, for a compound annual growth rate (CAGR) of 8% from 2023 to 2026. Also, management expects distributable cash flow per share (DCF) of between $5.70 to $6.10, for a 3% CAGR.
Finally, the medium-term outlook for Enbridge stock is also strong. Management expects adjusted EBITDA, DCF, and earnings per share to post a 5% CAGR. Dividends are also expected to grow at a CAGR of up to 5%.
Strong yield and strong growth
The decline in Enbridge’s stock price has driven its yield higher, to the current 5.7%. This yield is supported by Enbridge’s strong balance sheet and strong fundamentals. In its latest quarter, the company reported cash from operating activities of $4.1 billion, 28% higher than the same period last year.
The future growth for Enbridge is evident in its $41 billion growth project backlog. This growth is supported by the generational positive change that we’re seeing in Canada’s Western Canadian Sedimentary Basin. Government policies supporting drilling growth and infrastructure, as well as strong demand from home and abroad are acting as strong tailwinds for Enbridge.
The bottom line
Enbridge’s stock price is providing an opportunity for investors to buy at discounted prices. The company is embarking on a strong growth path with plenty of opportunities to participate in the fast-growing energy industry today. I’m therefore buying this stock while it’s on sale today.
