You Can Confidently Buy and Hold This Resilient 6%-Yielding Dividend Stock Through at Least the End of the Decade

Core Viewpoint - The current market uncertainty presents challenges for investors, but companies like Enbridge are well-positioned to navigate these conditions due to their resilient business models and predictable cash flows [1][2]. Financial Performance - Enbridge reported a record adjusted EBITDA growth of 18% to CA$5.8 billion ($4.2 billion) and a 9% increase in distributable cash flow to CA$3.8 billion ($2.7 billion) [4]. - The company has maintained its financial guidance for 2025, marking the 20th consecutive year of achieving its annual financial targets despite market volatility [5]. Business Model and Risk Management - Enbridge derives 98% of its earnings from stable cost-of-service frameworks or long-term fixed-rate contracts, which protect 80% of its EBITDA from inflation [6]. - The company's low-risk profile contributes to its predictable earnings and cash flow [6]. Growth Initiatives - Enbridge has approved up to CA$2 billion ($1.4 billion) in capital investments for its Mainline pipeline and is expanding its gas transportation capacity with projects like the Traverse Pipeline, expected to be operational in 2027 [8]. - The company has CA$28 billion ($20.1 billion) in commercially secured capital projects scheduled to enter service through 2029, supporting anticipated adjusted EBITDA growth of 7% to 9% annually through 2026 [9]. Investment Opportunities - Enbridge is actively seeking new investment opportunities, including a recent agreement to invest $300 million for a 10% stake in the Matterhorn Express Pipeline [10]. - The company has the financial flexibility to pursue additional acquisitions and capital projects, enhancing its long-term growth outlook [10]. Dividend Growth - Enbridge aims to grow its dividend by approximately 3% annually through next year and potentially 5% per year after 2026, extending its dividend growth track record to 30 consecutive years by 2025 [11]. - The stable and rising cash flow from its diverse energy infrastructure assets supports the company's ability to pay dividends while investing in growth [12].