We saw telecom giants pause dividend growth (I’m looking at you, TELUS), and a dividend cut of 56% B.C. We saw a complete dividend suspension PetroTal in November, and a 40% dividend cut Northland Power was necessary to sustainably finance the enormous offshore wind energy development pipeline.
In short, returns close to or above 7% scream risk! However, extra due diligence can increase confidence in selecting the best high-yield dividend stocks to buy for the long term. The most valuable asset in a dividend portfolio is not only current passive income, but also the visibility of future cash flow.
That’s why, despite the noise in the broader market, with a 6.1% payout, Enbridge (TSX:ENB) remains the high-yield stock I’m most comfortable holding for the next decade, and at least the next five years.
The comfort in the backlog of capital investments of Enbridge stock
The main reason I feel comfortable with Enbridge is that Enbridge’s future is not based on guessing oil prices; it is based on contracted cash flows for take-or-pay pipelines and an extensive construction schedule.
Enbridge currently has a secured capital program of approximately $35 billion that will be deployed through 2030. These are not ‘planned’ or ‘aspirational’ expenses. The financing will be allocated to projects that are commercially secured, and to “utility” investments that will diversify revenues, earnings and cash flow profile.
Management has confirmed that approximately $8 billion of these projects will be commissioned in 2026.
These projects should generate reliable cash flow immediately upon completion, which would directly support the 6.1% dividend.
When you buy Enbridge stock today, you’re buying the current pipeline network, a growing natural gas company, and a share of renewable energy with a pre-funded, non-dilutive growth pipeline that extends well into the next decade.
A boring, but beautiful engine for passive income growth
Enbridge’s medium-term financial guidance promises respectable operating profit growth rates and a stronger distributable cash flow profile. While other high-yield companies are struggling to maintain their payouts, Enbridge has reaffirmed a steady growth trajectory that income investors should love.
Management targets earnings before interest, taxes, depreciation and amortization (EBITDA) growth of 7-9% through 2026, with EBITDA and distributable cash flow (DCF) growth normalizing at 5% through 2030.
This creates a compelling mathematical floor for your total returns. If you buy the stock today at a 6.1% returns and the company grows cash flow 5% annually, then you’re looking at a potential total return of about 11% per year, without the need for any appreciation, multiple expansion or hype.
The ENB stock dividend: a 31-year growth series
ENB dividend data Ygraphs
There’s valuable comfort in knowing that management is prioritizing growing the dividend payout in Enbridge stock.
Recently, Enbridge announced a 3% dividend increase for 2026, marking the 31st consecutive year of increases. While 3% may sound modest compared to the increases of a decade ago, it seems sustainable. If the company adopts a 5% growth target for DCF, and perhaps the dividend as well, investors who buy ENB shares today could see returns grow to 7.5% by 2030.
Enbridge’s cash flow payout ratio remains healthy below 70%, and with the company projecting $5.70 to $6.10 in DCF per share through 2026, the dividend ($3.88 annualized) is well covered. In fact, management is retaining enough cash to self-finance the massive $35 billion backlog we mentioned, reducing the need to issue stock or take on dangerous amounts of debt.
The silly bottom line
A return of 6.1% usually comes with a catch. In the case of Enbridge stock, the “catch” is that you have to accept boring, single-digit growth rates in lieu of explosive profits in the tech sector, and Bay Street could add execution risk for new low-carbon projects to the company’s equity risk profile.
But looking at the recent insider data, the $35 billion backlog, the committed regulated interest rates and the 5% medium-term growth target, I see a company that has already built the ‘dividend bridge’ to 2030. For a long-term passive income portfolio, that’s the kind of comfort I’m looking for.
#yield #comfortably #hold #long #term