Valued at a market capitalization of $147 billion, Enbridge (TSX:ENB) is one of the most popular stocks in Canada. Since early 2001, TSX stock has returned more than 500% to shareholders. However, if we adjust for dividend reinvestments, the cumulative return is closer to 1,700%. It means that a $1,000 investment in ENB stock in 2001 would be worth over $18,000 today.
Despite the market gains, Enbridge offers shareholders a tasty 5.7% dividend yield, given an annual payout of $3.78 per share through 2025. Let’s see if the TSX dividend stock can continue to deliver outsized returns in the coming years.
The bull case of investing in Enbridge stock
Enbridge stands out as one of North America’s most vital energy infrastructure companies, transporting approximately 30% of the continent’s crude oil and nearly 20% of the natural gas consumed in the United States.
The Calgary-based company operates in four main segments: liquid pipelines, gas transmission, gas distribution and storage, and renewable energy generation. This diversified business model generates remarkably predictable cash flows with minimal exposure to commodity prices.
What makes Enbridge attractive to investors is its track record of stability and growth. The company has achieved financial guidance for 19 years in a row and increased its dividend 30 years in a row, earning Dividend Aristocrat status.
It maintains a sustainable payout ratio of 60-70% of distributable cash flow and has returned approximately $35 billion to shareholders over the past five years, with plans to return $40-45 billion over the next five years.
Recent achievements include completing a massive $19 billion acquisition of three U.S. gas companies and deploying $7 billion in capital. Enbridge is strategically positioned for the energy transition, connecting to all operating LNG terminals on the U.S. Gulf Coast while building renewable energy capacity. The company has secured $29 billion in capital backlog focused on low-risk brownfield expansion projects that should drive steady growth.
Enbridge is also committed to sustainability, aiming for net-zero emissions from operations by 2050, while investing in hydrogen, renewable natural gas and carbon capture technologies. With its combination of stable dividends, modest growth and key infrastructure assets, Enbridge offers investors a defensive play on North American energy demand.
A strong performance in the second quarter of 2025
Enbridge delivered another strong quarter, with record EBITDA (earnings before interest, taxes, depreciation and amortization) in the second quarter, mainly due to the recently acquired US gas companies and successful rate settlements in the gas transmission business.
The company’s solid performance in the first half of the year has management confident that it will end 2025 at the top end of EBITDA guidance, while remaining on track to meet distributable cash flow targets. The balance sheet also looks healthy, with debt/EBITDA improving to 4.7 times, while the acquired utilities contribute a full quarter of earnings.
The Mainline continues to perform exceptionally well, moving three million barrels per day during the quarter and achieving distribution in six of the first eight months of this year.
Management emphasized Enbridge’s stability amid ongoing market volatility, noting that roughly 80% of EBITDA comes from assets with revenue inflators or regulatory cost recovery mechanisms. The company has virtually no exposure to commodity prices and minimal tariff risk.
With 29 new data centers within 50 miles of its natural gas systems and connections to 100% of the Gulf Coast’s LNG export capacity, Enbridge is ideally positioned to meet growing energy demand while maintaining its 30-year streak of dividend increases.
Analysts who follow TSX dividend stocks predict earnings will rise from $2.80 per share in 2024 to $4 per share in 2029. The annual dividend is expected to rise from $3.66 per share to $4.17 per share over this period.
Given consensus price targets, ENB shares are trading at a 2% discount in October 2025. Adjusting for dividend reinvestments, the cumulative return over the next twelve months could be closer to 7.5%.
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