When it comes to Canadian dividend stocks worth owning for years, there’s no doubt Enbridge (TSX: ENB) continues to be one of the most intriguing because of how much room it still has to grow.
That can be easy to underestimate with a company this big, especially when its pipelines and gas utilities already generate the cash flow behind one of Canada’s most popular dividends.
However, growing electricity demand, expanding liquefied natural gas (LNG) exports and the need for reliable energy supplies are continuing to create a tonne of opportunities for companies that can connect producers with customers.
And Enbridge already owns a massive network of infrastructure that it can continue expanding and scaling as those needs grow.
That’s why, although its existing operations are already crucial to the North American economy and support a reliable dividend, its $41 billion secured growth backlog still matters so much. It gives investors a way to see where additional business could come from over the next several years, while its existing operations continue generating reliable cash today.
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Why Enbridge’s growth backlog matters
One of Enbridge’s biggest advantages is that, because of its massive network, many of its opportunities involve expanding infrastructure and customer relationships it already has in place.
For example, its $4 billion Sunrise Expansion Program will add capacity to the existing Westcoast natural gas system in British Columbia, with construction already underway and service targeted for late 2028.
That allows Enbridge to move more gas through a system already connecting suppliers with homes, businesses, power generators and other customers.
Plus, the expansion is backed by long-term take-or-pay agreements, meaning customers commit to paying for the capacity they reserve, which is how Enbridge structures many of its pipeline projects.
That’s right up Enbridge’s alley because it makes future revenue more predictable as it invests in essential infrastructure, while giving customers the transportation capacity they need to support their own growth.
So, the appeal of the backlog is that it gives Enbridge years of opportunities to expand its networks, with customer demand already supporting the projects it plans to build.
How that growth can support more dividend income
Of course, building those projects requires capital, but Enbridge already generates considerable cash to help fund that growth alongside its dividend.
For example, its distributable cash flow (DCF) is calculated after interest costs and the spending needed to maintain its assets, and its $3.88 annual dividend represents roughly two-thirds of the DCF per share it expects to generate in 2026.
That not only helps keep the dividend at a sustainable level, but also leaves cash to fund expansion alongside other sources of financing, such as debt or strategic partners.
Furthermore, management expects DCF per share to grow at an average annual rate of roughly 5% beyond 2026, with the backlog helping support that outlook.
That’s especially compelling with the company already providing one of the most reliable dividends on the TSX and the stock yielding roughly 5.8% today. You’re already earning significant income while those projects move ahead and eventually start contributing additional cash flow.
Enbridge is already a roughly $150 billion company, so it’s not a stock you’re buying for explosive growth.
However, it’s one of the best and most reliable core portfolio holdings you can own for its defensiveness, the income it provides and its consistent growth potential, with 31 consecutive years of dividend increases showing the track record it has already built.
That’s why its backlog matters so much. As Enbridge continues expanding its networks and bringing projects online, it can keep growing the business behind your shares and supporting more dividend income over the long haul.
