Key Highlights

  • Enbridge Inc. (TSX:ENB) offers a Dividend Yield of 5.66%.
  • The quarterly dividend rose 3% to $0.97 per share, or $3.88 annualized, effective March 1, 2026, marking the 31st consecutive annual increase.
  • 2026 guidance calls for adjusted EBITDA of $20.2 billion to $20.8 billion and distributable Cash Flow per share of $5.70 to $6.10.
  • Guidance has been reaffirmed in every quarter this year, and third-quarter 2026 results were scheduled for release on November 6.
  • About $8 billion of new projects enter service in 2026, and management targets roughly 5% annual growth after 2026.

Canada’s Dividend Aristocrat of Pipelines

Enbridge Inc. (TSX:ENB) is North America’s largest energy infrastructure company, operating liquids pipelines, gas transmission, gas distribution and storage, and renewable power, including a growing European offshore wind portfolio. Its shares also trade in New York, and the company has raised its dividend every year since 1995.

At a dividend yield of 5.66%, TSX:ENB remains a core holding for Canadian income portfolios. The Investment case rests on contracted and regulated cash flows, high asset utilization and a predictable formula of steady growth plus annual dividend increases.

Dividend Growth: 31 Straight Years

In December 2025 Enbridge raised its quarterly dividend by 3%, from $0.9425 to $0.97 per share, lifting the annualized rate from $3.77 to $3.88 effective with the March 1, 2026 payment. It was the 31st consecutive annual increase, and the company described the streak as a pillar of its first-choice investment proposition.

Increases have been modest but reliable, and they have survived oil price crashes, financial crises and a global pandemic. Analysts expect continued growth in dividends as distributable cash flow per share rises through the decade.

2026 Guidance and Latest Results

Enbridge issued 2026 guidance for adjusted EBITDA of $20.2 billion to $20.8 billion and distributable cash flow per share of $5.70 to $6.10, a roughly 4% increase from the midpoints of 2025 guidance. Management has reaffirmed that guidance at every Quarterly Report so far this year.

Operating momentum has been strong. The mainline system has carried record volumes, and in 2025 the company posted record third-quarter EBITDA, distributable cash flow of $2.6 billion in the quarter and $9.2 billion over nine months. The company reports third-quarter 2026 results on November 6, and earlier in the year analysts noted that second-quarter Leverage of 5.1 times reflected a currency effect that would otherwise fall within the target range.

Payout Ratio and Cash Flow Coverage

The dividend equals roughly 64% to 68% of 2026 distributable cash flow per share, based on the $3.88 payout against guidance of $5.70 to $6.10, which sits inside management’s long-standing payout target of 60% to 70%. With about 2,183 million shares outstanding, the annual dividend bill is near $8.5 billion, against guided distributable cash flow of $12.5 billion to $13.3 billion.

That leaves roughly $4 billion to $5 billion of retained cash flow to help fund a growth Capital program of about $10 billion in 2026, without requiring external equity. Financing costs of about $5.4 billion and maintenance capital of roughly $1.2 billion are already deducted in that distributable cash flow figure.

Balance Sheet, Leverage and Growth Backlog

Enbridge targets debt-to-EBITDA of 4.5 to 5.0 times, and it exited the third quarter of 2025 at 4.8 times. The financing plan for 2026 includes about $10 billion of Debt issuance, substantially earmarked to refinance $5 billion of maturities, and the company has hedged part of its fixed-rate issuance.

About $8 billion of secured projects enter service in 2026, supported by low-risk commercial frameworks, and the project Backlog stood near $35 billion after $3 billion of new sanctions in the third quarter of 2025. Management expects roughly 5% annual growth in EBITDA, Earnings and distributable cash flow per share after 2026, compared with about 3% per share growth for distributable cash flow in the 2023 to 2026 window.

Risks Dividend Investors Should Watch

Leverage near the top of the target range, higher interest costs and the capital intensity of the growth program are the main financial risks. Regulatory approvals, pipeline apportionment and policy shifts on cross-border energy trade could affect returns.

Adjusted Earnings Per Share have been under pressure from higher financing costs, and Interest Rate changes can influence the share price. About 95% of customers carry investment-grade ratings, which limits counterparty risk.

Is the Enbridge Dividend Sustainable?

The $3.88 annual dividend looks highly sustainable. It is covered by contracted and regulated cash flows, sits inside the payout target, and is supported by a long history of guidance delivery and a large secured backlog.

Investors should watch third-quarter results, leverage versus the 4.5 to 5.0 times target, and progress on projects entering service as TSX:ENB continues to compound.