This Durable 5.2%-Yielding Dividend Stock is as Dependable as They Come

Core Insights - Enbridge has demonstrated consistent earnings predictability and dividend growth, achieving record earnings and cash flow for the year 2025 while meeting its financial guidance for the 20th consecutive year [1][11] Financial Performance - Enbridge generated CA$20 billion ($14.7 billion) in adjusted EBITDA for the last year, reflecting a 7% increase from the previous year [4] - The company produced CA$12.5 billion ($9.2 billion) in distributable cash flow, marking a 4% increase from 2024 [4] - Enbridge raised its dividend by 3% for 2026, resulting in a yield of 5.2% [4] Business Model and Growth Drivers - The company's low-risk business model, supported by stable cost-of-service agreements and long-term contracts, underpins 98% of its earnings, providing a solid foundation for growth [5] - Enbridge has CA$10 billion to CA$11 billion ($7.3 billion-$8.1 billion) in annual investment capacity, allowing for reinvestment in operations [8] - The company secured CA$14 billion ($10.3 billion) in new expansion projects last year, increasing its backlog to CA$39 billion ($28.6 billion) [9] Future Outlook - Enbridge expects to deliver around 3% growth in its distributable cash flow per share this year and approximately 5% annual growth beyond 2026, supporting a similar dividend growth rate [10] - The company anticipates approving an additional CA$10 billion to CA$20 billion ($7.3 billion-$14.7 billion) in expansion projects over the next two years, enhancing its growth visibility [9]