This 5.9% Dividend Stock Is One I’ll Never Sell — Here’s Why

This Canadian dividend stock has a great combination of a 5.8% dividend yield, resilient cash flow, and billions of dollars in growth projects makes it a compelling long-term income stock.

Key Points
  • Enbridge stock offers a 5.9% annualized dividend yield at its current price.
  • Its second-quarter adjusted EBITDA rose about 3% YoY, while operating cash flow jumped about 27%.
  • A $41 billion secured growth backlog, along with recent acquisitions and expansion projects, could support Enbridge's long-term cash flow growth.

I don’t need every stock in my portfolio to be a big winner in the short term. Some of my best holdings are the ones that quietly keep doing the same useful things year after year. They generate cash. They pay dividends. They invest in new projects. And they make it easier to stay invested when the market turns uncertain. With Canadian investors still watching trade tensions, global conflict, and shifting interest rate expectations, that kind of stability can matter even more. A dependable business can help you focus less on short-term noise and more on long-term income.

In this article, I’ll look at a Canadian dividend stock that continues to give me plenty of reasons to hold on for the long run.

person with spyglass looks at ocean horizon

Source: Getty Images

Why Enbridge keeps earning its keep in my portfolio

If I want a dependable dividend stock that I can hold through different market conditions, Enbridge (TSX: ENB) is exactly the type of business that I trust.

Headquartered in Calgary, Enbridge transports and distributes energy through liquid pipelines and natural gas transmission systems. It also owns regulated gas utilities, storage assets, and renewable power operations. ENB stock currently trades around $65 per share, giving it a market cap of about $145 billion. At that price, the stock offers a handsome 5.9% annualized dividend yield.

The shares are up about 1% year-to-date, but they have fallen roughly 13% in six months. Rather than focusing too much on those short-term moves, I would rather look at what the underlying business has been doing. On that front, Enbridge continues to generate substantial cash flow while investing for future growth.

Cash flow keeps supporting Enbridge’s dividends

Enbridge’s dependable cash generation is a big reason I would rather keep collecting its dividend than worry too much about its short-term stock price moves.

In the second quarter, the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) inched up about 3% year-over-year (YoY) to roughly $4.8 billion. Higher revenue from rate increases at East Tennessee, Texas Eastern, and Enbridge Gas Utah helped drive the increase.

Enbridge’s cash provided by operating activities jumped about 27% YoY to $4.1 billion. At the same time, its distributable cash flow (DCF) improved by nearly 2%, helped by higher adjusted EBITDA and the timing of maintenance capital spending. Recently, the company also reaffirmed its full-year 2026 guidance.

Enbridge’s growth gives me another reason to keep holding

While Enbridge’s dividends are already attractive, the company’s growing asset base gives this long-term holding more appeal.

The company ended the second quarter with about $41 billion of secured growth projects. Since then, it has announced a US$600 million deal to acquire Salt Creek Midstream’s crude gathering business. In September, Enbridge acquired Tallgrass Energy’s crude transportation business for US$2.55 billion. The deal includes the Pony Express pipeline and related assets.

Enbridge is also finding ways to fund expansion while preserving financial flexibility. Kohlberg Kravis Roberts (KKR) and Apollo agreed to invest about $2.7 billion in the Aspen Point and Sunrise expansion programs on Enbridge’s Westcoast system, while Enbridge will retain majority ownership and operating control.

Why I’ll never sell Enbridge stock

Enbridge continues to offer a 5.9% yield, resilient cash flow, and a deep pipeline of contracted and regulated growth opportunities. As long as the business keeps supporting its dividend and expanding its cash flow base, this is one dividend stock I would much rather hold than sell.

Fool contributor Jitendra Parashar has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

More on Dividend Stocks

happy woman throws cash
Dividend Stocks

The Ideal TFSA Stock: A 5.9% Yield-Paying Constant Cash

Enbridge’s predictable cash flows, substantial growth pipeline, and long history of dividend increases underpin its long-term investment appeal for TFSA…

Read more »

woman gazes forward out window to future
Dividend Stocks

Dividend Income in Retirement: What Could Go Wrong?

Dividend investing is a proven way to create income in retirement but you must know the risks you need to…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

A 5% Monthly Payer I’d Buy for My TFSA: About $100 a Month on $24,000

Canada’s largest residential landlord offers a high yield, reliable monthly income, and a tax-sheltered foundation for TFSA investors.

Read more »

Two seniors walk in the forest
Dividend Stocks

Can Dividends Replace a Paycheque in Retirement?

Can dividends in retirement replace your paycheque? Explore how Scotiabank, RioCan REIT, and Fortis can help build a steady retirement…

Read more »

Sliced pumpkin pie
Dividend Stocks

The Fees That Quietly Eat Into a Small Investment

Many funds charge outrageous fees, but broad market index funds like the iShares S&P/TSX Capped Composite Index ETF (TSX:XIC) usually…

Read more »

dividends grow over time
Dividend Stocks

The U.S. Dollar is Rising Again: Here’s What VFV Investors Should Know

VFV investors receive both U.S. equity returns and currency translation.

Read more »

businessmen shake hands to close a deal
Dividend Stocks

A Canada-India Trade Deal Could Be Big for Infrastructure: Is WSP Stock a Buy?

India could require roughly US$840 billion of urban infrastructure investment over 15 years.

Read more »

woman considering the future
Dividend Stocks

How Much Would You Need to Invest to Earn $100 a Month in Dividends?

These two monthly-paying dividend stocks can boost your passive income in this uncertain macroeconomic environment.

Read more »