Enbridge
Enbridge (TSX:ENB) just reported solid third-quarter (Q3) 2025 results and provided a key update on its capital program. The energy infrastructure giant added $3 billion to its development pipeline last quarter, bringing its secured capital projects program to $35 billion.
As the new assets are completed over the next five years, Enbridge expects the revenue and cash flow expansion to result in annual distributable cash flow growth of 5% between 2026 and 2030. That should support continued dividend increases. Enbridge has increased its dividend every year for the past thirty years.
The company has also been active on the acquisition front as it continues to diversify its asset base. Enbridge bought three natural gas companies in the United States in 2024. These assets complement existing natural gas transmission infrastructure and position Enbridge to benefit from an expected increase in natural gas demand in coming years as gas-fired power plants are built to generate electricity.
Enbridge’s other purchases include an oil export terminal in Texas and the third largest wind and solar energy developer in America. In addition, Enbridge is a partner in the Woodfibre liquefied natural gas (LNG) export facility being built on the coast of British Columbia. These companies all create opportunities for revenue growth.
Enbridge’s share price has risen significantly over the past two years, but investors can still get a 5.6% dividend yield from the stock.
Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS) is another stock that has had a nice run, recently hitting a new all-time high. The bank is beginning to see the benefits of a turnaround program aimed at making the business more efficient while shifting growth investments from Latin America to the United States and Canada.
Over the past twenty to thirty years, the Bank of Nova Scotia has spent billions of dollars buying assets in Latin America, hoping that strong growth opportunities would emerge as the middle class expanded. However, political and economic volatility has resulted in lower than expected returns for shareholders. Bank of Nova Scotia’s stock price lagged that of its major Canadian peers, which focused more on the United States and Canada for growth.
As part of the transition, Bank of Nova Scotia sold its assets in Colombia, Costa Rica and Panama earlier this year. In 2024, it also bought a 14.9% stake in KeyCorp, a US regional bank, to strengthen its US presence.
Looking ahead, lower interest rates will ease pressure on borrowers who have too much debt. This should lead to lower provisions for credit losses at banks, as long as unemployment does not rise. If the economy slides into recession and job losses increase, the Bank of Nova Scotia will have sufficient capital buffers to weather the turbulence.
Investors who buy BNS stock at current levels could get a dividend yield of 4.7%.
The bottom line
Enbridge and Bank of Nova Scotia pay attractive dividends today with yields well above the rates currently offered on GICs. If you have some money to put to work in a portfolio focused on passive income, these stocks deserve to be on your radar.
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