Three years from now, Enbridge (TSX:ENB) inventory must be value greater than it’s in the present day, and it must be paying you an even bigger dividend alongside the way in which. This prediction is backed by 31 years of execution and probably the most defensible enterprise fashions in North American vitality.
Right here’s why.
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Enbridge experiences report leads to 2025
Enbridge wrapped up 2025 with report EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) and distributable money stream (DCF) per share.
In keeping with Chief Monetary Officer Pat Murray, it marked the twentieth consecutive 12 months that Enbridge met or exceeded its annual monetary steering.
That type of consistency is uncommon. Most vitality corporations are on the mercy of commodity costs. Enbridge is totally different.
- About 98% of its money stream comes from regulated or long-term contracted sources, which implies it continues to generate predictable revenue whether or not oil and fuel costs are climbing or crashing.
- The mainline, Enbridge’s flagship crude oil pipeline system, transported a mean of three.1 million barrels per day in 2025.
- It was apportioned (which means demand exceeded capability) for all however three of the final 12 months of the 12 months.
- In actual fact, it was nonetheless working at double-digit apportionment ranges in January and February of 2026.
That’s a pipeline whereon clients are lining as much as ship greater than it may deal with proper now.
A $39 billion backlog will gasoline the dividend
CEO Greg Ebel informed traders on the This fall name that Enbridge’s secured development backlog has now grown 35% because the firm’s Investor Day in March 2025. It at the moment stands at $39 billion and extends via 2033. Put merely: Enbridge already is aware of the place a major chunk of its future earnings is coming from.
The pipeline large additionally expects to succeed in a closing funding resolution on one other $10 billion to $20 billion in new tasks over the subsequent 24 months. These tasks span all 4 of its enterprise models: liquids pipelines, fuel transmission, fuel utilities and storage, and renewable energy.
Gasoline transmission is the standout proper now.
- Enbridge is advancing greater than 50 potential knowledge centre alternatives that would require as much as 10 billion cubic ft of pure fuel per day.
- The corporate lately sanctioned the Bay Runner pipeline extension, upsized the Eiger Specific pipeline from 2.5 to three.7 billion cubic ft per day, and is increasing storage capability throughout its community.
- All of this helps Ebel’s said goal of 5% annual development via the top of the last decade.
To place that in plain math: if Enbridge hits 5% annual development for 3 straight years, the inventory’s underlying money stream, and by extension its dividend, must be meaningfully increased by 2029.
Enbridge raised its dividend once more in December 2025, extending its streak to 31 consecutive years of will increase. The compound annual development price on that dividend because the streak started is a quantity most corporations can solely dream about.
Over the subsequent 5 years, Enbridge expects to pay out $40 billion to $45 billion in whole dividends to shareholders. The corporate’s dividend payout sits squarely inside its 60%–70% DCF goal vary, suggesting there’s room to proceed rising it.
The stability sheet can be in fine condition. Debt-to-EBITDA sits at 4.8 instances, inside the firm’s goal vary of 4.5 to five instances, and the investment-grade credit score profile stays intact.
For revenue traders, Enbridge gives one thing genuinely uncommon: a big, rising dividend backed by one in every of North America’s most important items of infrastructure.
The TSX dividend inventory strikes about 30% of all crude oil produced in North America and roughly 20% of all pure fuel consumed in the USA, in keeping with firm knowledge.
Three years from now, Enbridge inventory must be increased, its dividend must be larger, and its backlog must be even additional alongside. For affected person traders, that’s a compelling case.
