A Canadian energy stock poised for major growth in 2026

When I think about the top energy stocks that could see big upside in 2026, there were really only a few that I could pinpoint as companies with meaningful upside catalysts for the year ahead. For oil and gas companies, fluctuations in commodity prices can derail a thesis in an instant. Other renewable energy companies have seen similar volatility, with added regulatory risk.

That said, energy infrastructure companies like it Enbridge (TSX:ENB) have taken a new look at their prospects. Investors are now generally positive about pipeline companies like Enbridge, with expectations that the new pipeline projects or expansions of existing networks could boost valuations in this area.

Here’s why I think Enbridge is the Canadian energy stock to watch for 2026.

A dividend profile that is worth investing in

Enbridge has historically been among the highest-yielding energy stocks on the market. That has changed somewhat, with the company’s 5.8% yield still lower than many of its peers.

That said, the company’s fairly consistent dividend growth (of around 3% per year) should provide meaningful dividend growth for those looking for passive income streams that can grow over time. In my opinion, Enbridge is an excellent holding for a passive income or retirement portfolio for this important reason.

The growth profile has improved greatly

In addition to Enbridge’s core dividend, this pipeline giant has new growth catalysts in the form of oil-friendly governments in both Canada and the US. The political willpower needed to get large-scale, multibillion-dollar projects approved (even if private companies like Enbridge finance these expansions) has been hard to come by in recent decades.

With the Carney and Trump administrations likely to greenlight an expansion of the existing fossil fuel infrastructure we work with (much of which is decades old and could lead to leaks), some in this industry believe this is a net positive.

Simply replacing or expanding existing pipeline capacity could be beneficial for Enbridge because it would enable the kind of production growth that could drive the kind of revenue and profit growth that investors are looking for.

I’m bullish on Enbridge heading into 2026 specifically for this reason. That said, this is a top dividend stock that I would buy on dips as a core portfolio position for its other properties, which are equally attractive in my books.