1 High-Yield Dividend Stock You Can Buy and Hold for a Lifetime of Passive Income

Core Viewpoint - Enbridge has established a durable business model in the energy sector, characterized by consistent dividend payments and strong financial performance, making it an attractive long-term investment for dividend income [1][2][4]. Business Performance - Enbridge has paid dividends for over 70 years, increasing payments for the past 30 consecutive years, and is on track to meet its annual financial guidance for the 20th straight year [1][2]. - The company reported record earnings before interest, taxes, depreciation, and amortization (EBITDA), distributable cash flow per share, and earnings per share (EPS) in the first quarter, despite market volatility [5]. Business Model - Approximately 98% of Enbridge's cash flow is derived from stable cost-of-service frameworks or long-term, fixed-rate contracts with financially strong customers, with over 95% holding investment-grade credit ratings [6]. - The business model protects about 80% of EBITDA from inflation, contributing to predictable financial results [6]. Shareholder Value - Enbridge's low-risk profile supports strong shareholder returns, with a history of delivering double-digit returns over the past 20 years [7]. - The company aims to distribute 60% to 70% of its stable cash flow as dividends, retaining significant free cash flow for expansion [9]. Growth Opportunities - Enbridge has a secured growth backlog of CA$28 billion ($20 billion) in projects expected to be completed by the end of 2029, with plans to deploy CA$8 billion-$9 billion ($5.7 billion-$6.4 billion) annually towards these projects [10]. - An additional CA$50 billion ($35.7 billion) in expansion opportunities is under development, with a focus on high-return and strategic projects [11]. Long-term Outlook - The combination of stable earnings, visible growth from the secured backlog, and investment capacity supports a long-term growth outlook, with expectations of 5% annual business growth through the end of the decade [12]. - Enbridge is well-positioned to capitalize on long-term demand growth for energy, particularly in lower-carbon sectors like natural gas and renewables [12][14].