In the last thirty-one years, Enbridge Inc. (TSX: ENB) stock has raised its dividend every year. In fact, its annual dividend per share increased more than 1,400%. This track record speaks for itself and it’s one of the reasons why I consider buying Enbridge stock when it’s down. Like today.
Enbridge’s stock price has fallen 15% since its 2026 highs. Yet the company is in the midst of one of the best environments for the energy and energy infrastructure industries.
Let’s take a look.
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Enbridge stock: Consistent performance and consistent income
As I mentioned in the introduction, Enbridge stock has a stellar track record of dividend growth and reliability.
This track record is made possible by a few factors. Firstly, Enbridge’s revenue is made up of regulated revenue from its utility segment and revenue that is underpinned by long-term contracts in its energy infrastructure segment. This results in highly predictable, reliable, and defensive revenue streams.
Secondly, Enbridge’s business is a defensive business. Energy infrastructure is the backbone of modern society and it’s one of the last expenses to be cut in hard times. Enbridge is doing the necessary business of getting this energy into the homes and businesses that so desperately need it.
Finally, Enbridge’s business is growing. Electricity demand, natural gas demand, renewables demand – they’re all growing. And Enbridge owns the necessary infrastructure that will get the energy to where it’s needed.
Attractive valuation
ENB stock is trading at $68.04, or 21 times next year’s earnings, as of Friday’s close. This valuation is quite low if one considers the stability and outlook of Enbridge’s business. In Enbridge’s latest quarter, the company reported $4.1 billion in cash from operating activities. This was 28% higher than the same period last year, and it was driven by strength in all of its businesses.
Looking ahead, the energy industry has entered a growth phase that’s supported by electricity demand, liquified natural gas (LNG) demand, and data centre demand, to name just a few. It’s also supported by a favourable policy environment in Canada, which has not been the case for many years. Enbridge’s $41 billion growth backlog highlights the growth opportunities that the company has through to 2030.
Buying Enbridge stock for income
So, taking all of this into consideration, I think that seizing on any opportunity to add Enbridge to your income-producing portfolio of stocks is a good idea.
For example, buying on weakness today can give you access to a 5.7% yield – a yield that’s highly safe, highly reliable, and growing. Investing a little over $13,500 into Enbridge stock would give you 200 shares. This would translate into $776 in annual dividend income in the first year. But, given Enbridge’s dividend growth program of up to 5% per year, this dividend would keep increasing year after year. In the second year, your dividend income would rise to as much as $814. And so on, and so on.
I already own Enbridge stock, and I’ve been adding on weakness when it falls a significant amount. When to add depends on what an investor feels comfortable with, but I think adding Enbridge on stock price weakness is a good way to accumulate a growing source of dividend income.
The bottom line
In closing, I think adding ENB stock on weakness is a good idea for any investor who is looking for income. It’s a predictable, safe, and highly reliable stock to turn to for one’s income needs.
