Key Points
-
Enbridge is one of the largest midstream businesses in North America.
-
The Canadian company owns four regulated natural gas utilities.
-
Enbridge is building a renewable power business from the ground up.
- 10 stocks we like better than Enbridge ›
The big draw with Enbridge (NYSE: ENB) is its lofty 5.1% dividend yield. And that yield is backed by 31 annual dividend increases. That’s a great start for any investor looking to buy a high-yield stock, but the story gets even better when you consider where Enbridge will be in 10 years.
Enbridge isn’t your typical midstream stock
The core of Enbridge’s business is its midstream oil and natural gas operations. Essentially, it charges fees for facilitating the movement of these vital energy commodities worldwide. The price of the commodities moving through its system is less important than the volume. And given the importance of oil and natural gas to modern life, volume is high most of the time. In fact, the conflict in the Middle East may even increase demand for oil and natural gas from North America as countries reconsider energy security.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
Despite the ongoing growth of renewable power, Enbridge’s midstream operations are likely to continue expanding over the next decade. But that’s not the only growth opportunity, as the company’s regulated natural gas utility business is also poised for expansion. Natural gas is increasingly replacing oil in the home heating market, but it is also in high demand among electric utilities, which are attempting to keep up with AI-driven demand for power.
So, more slow-and-steady growth from the company’s oil and natural gas-linked operations is likely for years to come. Since Enbridge’s midstream and regulated utility operations (which comprise four utilities) account for around 95% of its earnings before interest, taxes, depreciation, and amortization, it is well positioned to continue paying investors well. The company is calling for 3% distributable cash flow growth in 2026, but 5% each year over the longer term. Dividends should increase by around the same amounts.
The small, but vital, clean energy business
The one knock that a long-term dividend investor might have here is that Enbridge is heavily involved in carbon energy while the world is slowly shifting toward cleaner alternatives. Only, the company’s goal is to provide the world with the energy it needs. For example, it has been growing its natural gas exposure because that is a cleaner-burning fuel than oil.
That said, Enbridge’s third and final business line is actually clean energy. It is small today, but clean energy still accounts for a small share of the world’s energy needs. This division will continue to grow over the next decade, keeping the company apace with the changing face of the energy market. And over the long term, that means Enbridge will remain a vital player in the global energy market. So even an investor who believes renewable energy is the future can comfortably buy this high-yield energy stock and hold it for 10 years or more.
Should you buy stock in Enbridge right now?
Before you buy stock in Enbridge, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enbridge wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $398,052!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,181,688!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 205% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 27, 2026.
Reuben Gregg Brewer has positions in Enbridge. The Motley Fool has positions in and recommends Enbridge. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
