Enbridge's Reliable Business Model Supports Attractive Dividend Growth

Core Insights - Enbridge Inc. (ENB) is a leading midstream energy company that generates stable fee-based revenues, making it less vulnerable to oil and natural gas price volatility [1][5] - The company is positioned to generate incremental cash flows through secured capital projects across various sectors, including liquid pipelines, gas transmissions, renewables, and gas distribution & storage [1][5] Financial Performance - Enbridge expects its adjusted EBITDA for 2026 to be between C$20.2 billion and C$20.8 billion, indicating a compound annual growth rate (CAGR) of 8% from 2023 [2] - The anticipated dividend for 2026 is C$3.88 per share, reflecting a CAGR of 3% through 2023, with a current dividend yield of 5.94%, surpassing the industry average of 5.4% [2][5] Comparison with Peers - Other midstream companies, Williams (WMB) and Kinder Morgan Inc (KMI), have lower dividend yields of 3.3% and 4.3%, respectively, despite their strong positions in the clean energy market [3] Market Performance - ENB's shares have increased by 10.5% over the past year, outperforming the industry average increase of 9.8% [4] Valuation Metrics - Enbridge has a trailing 12-month enterprise value to EBITDA (EV/EBITDA) ratio of 14.66X, which is higher than the industry average of 13.57X [7]