Enbridge (ENB) – A Reliable Income Play with Built-In Growth Potential
Enbridge (NYSE: ENB) offers something rare in the energy sector: a combination of stability, income, and multiple avenues for long-term growth. At today’s price of around $49, the stock yields a hefty 5.8%, far above the S&P 500’s 1.2% and the average energy stock’s 3.3%. More importantly, that dividend has been increased for 30 consecutive years (in Canadian dollars), backed by an investment-grade balance sheet and a business model built on stable, fee-based infrastructure.
Enbridge is one of the largest players in North America’s midstream sector, moving massive volumes of oil and natural gas through its pipeline network. Its scale allows it to both acquire smaller peers and reinvest in existing assets to expand capacity and efficiency. The recent acquisition of three regulated natural gas utilities from Dominion Energy not only diversifies cash flow but also tilts the business further toward cleaner energy—a segment with strong long-term demand.
While pipelines remain its bread and butter, Enbridge has been steadily building out its renewable power portfolio, including offshore wind farms in Europe. This measured push into clean energy positions the company to benefit as global energy needs evolve, without sacrificing the stability of its core operations.
Another advantage for U.S. investors: holding Enbridge in a tax-advantaged account like a Roth IRA can eliminate Canadian dividend withholding taxes, making its income stream even more attractive.
In short, Enbridge checks nearly every box for an income-focused, long-term holding—strong yield, reliable dividend growth, financial strength, and built-in opportunities to expand in both traditional and cleaner energy. For investors looking for a stock they can buy and hold for decades, ENB deserves serious consideration.
