When investors talk about reliability in the energy sector, Enbridge (NYSE: ENB) belongs in a class of its own. For over seven decades, this Canadian pipeline and utility powerhouse has paid a dividend, an almost unheard-of feat in an industry known for boom-and-bust cycles.
Even more impressive is that it has raised its dividend for 30 consecutive years, making it a rare income stalwart amid shifting energy tides.
But here’s what most investors overlook, Enbridge isn’t just consistent but is becoming one of the most self-sufficient capital allocators in the industry, so is it time to buy?
Key Points
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Enbridge has paid dividends for 70+ years, raised them for 30 straight, and currently yields 6.01%.
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With the majority of EBITDA inflation-proof, Enbridge avoids the debt and dilution common in the energy sector.
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Enbridge is becoming an integrated energy powerhouse, adding U.S. gas utilities, investing in renewables.
How Enbridge Keeps Defying Cycles
While many companies in energy are exposed to the whims of commodity prices, Enbridge runs a business that’s engineered to avoid those pitfalls. Most of its cash flow is either regulated or under long-term contracts, most of which are with investment-grade counterparties. That makes its revenue stream as dependable as some of the best-run utilities.
And its contracts are inflation-protected too, roughly 80% of its EBITDA is shielded from rising costs thanks to built-in escalators or regulated adjustments. In an inflationary world, that’s no small feat.
Quietly Building an Energy Empire
Last quarter management reported record EBITDA, distributable cash flow per share, and EPS—performance that came despite volatility in energy markets.
Today, Enbridge’s secured capital project backlog stands at around $20 billion, with projects planned across oil pipelines, natural gas transmission, utility distribution, and even renewables. These projects extend through to almost the end of the decade and are forecast to fuel 5% annual earnings growth for the rest of the decade, enough to comfortably sustain ongoing dividend hikes.
And the company has an additional $35 billion of potential growth projects under consideration. Case in point: it recently scooped up a 10% stake in the Matterhorn Express Pipeline.
The Dividend Machine Keeps Running
With a dividend yield hovering at 6.01%, Enbridge doesn’t just offer income but a payout that has historically risen.
Importantly, it doesn’t rely on issuing new shares to fund growth. Thanks to its investment-grade balance sheet and strong cash generation, Enbridge can self-fund around $7 billion in organic growth annually without needing to dilute shareholders.
That self-sufficiency is rare in this sector, where many peers lean heavily on equity markets or debt to grow.
A Hedge Against an Uncertain Energy Future
The big opportunity for Enbridge going forward may lie in what it’s building beneath the surface. While most headlines focus on oil and gas pipelines, Enbridge is broadening its reach into renewable natural gas, carbon capture, and offshore wind. That makes it one of the few traditional energy companies with a credible bridge to a lower-carbon future.
In short, Enbridge is quietly transforming into a vertically integrated energy platform, one that can thrive regardless of whether fossil fuels dominate or if renewables take center stage.
Enbridge isn’t flashy. But it’s dependable, diversified, and quietly scaling in all the right directions. With a 6.01%+ yield, a rock-solid financial model, and tens of billions in visible growth, this is the kind of stock that can pay you for life, without keeping you up at night.