This Nearly 6%-Yielding Stock Has Now Extended Its Dividend Growth Streak to 30 Years

Core Insights - Enbridge has achieved a milestone of 30 consecutive years of dividend growth, with a 3% increase for 2025, bringing its dividend yield closer to 6% [1][10] - The company's ability to maintain this growth is attributed to its stable business model and diversified operations [3][6] Business Model and Stability - Enbridge operates predictable pipelines and utilities supported by government-regulated rate structures and long-term fixed-rate contracts, contributing to its low-risk cash flow profile [3][5] - The company has strategically divested from assets exposed to commodity prices, enhancing cash flow stability by investing in rate-regulated natural gas utilities [4][5] Financial Profile - Enbridge maintains a reasonable dividend payout ratio of 60%-70%, allowing it to retain significant capital for operational expansion [5] - The company has a strong investment-grade balance sheet with a low leverage ratio, providing financial flexibility for future investments [5] Growth Prospects - Enbridge has a backlog of secured capital projects valued at CAD 27 billion (USD 19.2 billion), expected to come online through 2029 [7][8] - The company anticipates a 3% annual growth in cash flow per share through 2026, with an acceleration to around 5% thereafter, supporting continued dividend increases [8][9] Investment Appeal - Enbridge's elite record of dividend increases is underpinned by its low-risk business model and strong financial profile, making it an attractive option for investors seeking a growing income stream [10]