Enbridge (TSX: ENB) has long been a favourite among Canadian dividend investors, and for good reason. The energy infrastructure giant has paid dividends for over 70 years and increased its annual dividend for approximately 30 consecutive years. Its latest quarterly results provide another reason to remain optimistic about the stock.
Investors may have been particularly encouraged by Enbridge’s nearly doubling of profits in the third quarter (Q3) of 2026. However, there is more to this investment story than one impressive headline number. The company’s underlying financial performance, expanding project pipeline, and long-term growth opportunities suggest its dividend growth story may be far from over.
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Enbridge’s Q3 results show broad-based financial strength
Enbridge reported GAAP net income of nearly $1.3 billion, an impressive 89% increase from $682 million in Q3 2025. GAAP earnings per share (EPS) climbed to $0.59 from $0.30 a year earlier.
However, non-cash derivative gains contributed significantly to this increase. Therefore, adjusted financial results offer a better gauge of the company’s underlying performance.
The adjusted numbers were encouraging:
- Adjusted EBITDA, a cash flow proxy, reached $4.4 billion, up 3.9% year over year.
- Adjusted earnings increased 7.7% to nearly $1.1 billion.
- Adjusted EPS climbed 6.5% to $0.49 from $0.46.
- Distributable cash flow (DCF) increased 4.8% to $2.7 billion.
Enbridge’s natural gas businesses were particularly strong. Gas Transmission adjusted EBITDA increased 13% to $1.4 billion, while Gas Distribution and Storage grew 19% to $665 million. Rate case settlements involving major pipelines, including East Tennessee Natural Gas and Texas Eastern Transmission, helped support these results.
Liquids Pipelines was a weaker performer, with adjusted EBITDA declining 4.4% to $2.2 billion. Nevertheless, growth across its natural gas operations helped offset this weakness.
A $38 billion growth backlog could fuel future dividend increases
Perhaps the most compelling reason to remain bullish on Enbridge is its substantial growth pipeline.
During Q3, the company successfully placed approximately $3 billion of natural gas transmission projects into service, including the Aspen Point expansion in British Columbia and the Tennessee Ridgeline project.
Enbridge also expanded its natural gas footprint through its August agreement to acquire Laramie Energy’s assets US$485 million, plus up to US$65 million in contingent payments. The assets will help supply Enbridge Gas Utah. Meanwhile, the company finalized capital deployment for its Tallgrass Energy and Salt Creek Midstream crude asset acquisitions.
Enbridge consistently added new projects to its backlog this year, positioning it well to deliver on its $10–20 billion target for new project announcements through 2027. Its secured growth backlog stands at $38 billion currently.
Importantly, Enbridge reaffirmed its 2026 adjusted EBITDA guidance of $20.2 billion to $20.8 billion and DCF per share guidance of $5.70 to $6.10. Its medium-term outlook also calls for approximately 5% annual growth in adjusted EBITDA, DCF per share, and EPS.
That growth matters for dividend investors. Consistent increases in cash flow can support future dividend hikes without requiring the company to stretch its balance sheet or payout capacity.
Leadership transition and an attractive dividend yield
Another important development is the upcoming leadership transition. Long-time CEO Gregory Ebel intends to retire on December 31, with Michele Harradence taking over on January 1, 2027. Harradence currently leads Enbridge’s Gas Distribution and Storage business, bringing considerable operational experience to the position.
For investors, continuity in leadership and execution will be important as Enbridge pursues its growth plans.
At about $66 per share, Enbridge offers a dividend yield of nearly 5.9%. The stock also trades roughly 15% below the analyst consensus price target, suggesting potential capital appreciation alongside its substantial income stream.
The bottom line
Enbridge’s Q3 results reinforce why it remains one of Canada’s most compelling income stocks. Although the near-doubling of reported profits overstates the improvement in underlying earnings, adjusted earnings and cash flow are moving in the right direction. With a massive secured project backlog, approximately 5% expected medium-term financial growth, and a long history of dividend increases, I believe Enbridge still has considerable potential to reward patient shareholders. For investors seeking reliable income and relatively steady long-term growth, this dividend stock deserves a closer look.
