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Enbridge Inc. remains one of the most closely watched dividend stocks in Canada. Known for its vast pipeline network, gas distribution assets, and steady cash flows, the Calgary-based energy giant is once again in the spotlight after reporting its second-quarter results for 2025.
The company has long been a favourite among income investors, but with energy markets shifting and interest rates stabilizing, the question is whether Enbridge’s dividend is still as attractive as it once was.
Cash Flow Remains Enbridge’s Strength
Enbridge’s second-quarter numbers tell a familiar tale of resilience. The company posted adjusted EBITDA of $4.64 billion, up seven percent from last year, with distributable cash flow coming in at $2.9 billion. For a business that prides itself on predictability, that consistency is the real selling point.
Operating revenues reached nearly $14.9 billion for the quarter, supported by its mix of pipeline tolls, gas distribution sales, and commodity operations. Net income attributable to shareholders landed at $2.18 billion, equal to $1.00 per share. By comparison, adjusted earnings were $0.65 per share, reflecting Enbridge’s preferred measure of performance that strips out one-time items.
A dividend that keeps growing
For investors focused on income, Enbridge’s dividend is hard to ignore. The company pays $0.9425 per share quarterly, or $3.77 annually, which translates into a forward yield of nearly six percent at current trading levels. That is considerably higher than most utilities and well above the average payout on the TSX.
Management’s guidance for 2025 calls for distributable cash flow per share between $5.50 and $5.90. Using those figures, the dividend represents a payout ratio in the mid-60s, which sits comfortably within Enbridge’s stated 60 to 70 percent target range. That suggests the payout remains well covered by cash flow, even as the company continues to invest in capital projects.
Balance sheet and leverage
Debt remains a central talking point. As of June, Enbridge carried more than $100 billion in long-term borrowings, with a debt-to-EBITDA ratio of 4.7 times. While that leverage is elevated compared with some peers, the company’s regulated assets and long-term contracts give investors and rating agencies confidence in its ability to manage those obligations. Enbridge has also emphasized that its capital program is designed to be self-funded through operating cash flow and existing credit capacity, reducing the risk of overextension.
What analysts and markets are signaling
The market values Enbridge at roughly US$103 billion, with an enterprise value around US$182 billion. Its stock has been relatively steady compared with energy peers, partly due to the defensive nature of its cash flow profile. Analysts covering the stock have generally maintained a neutral to moderately bullish stance, pointing to the company’s dividend reliability but flagging the high debt load as a long-term consideration.
Interest rate trends are also key. As rates stabilize, the relative appeal of dividend-paying stocks improves, which could support demand for names like Enbridge. On the other hand, if commodity prices weaken or regulatory hurdles delay projects, cash flows could face pressure, limiting upside in the share price.
Is it a buy?
For investors seeking income stability, Enbridge remains a compelling option. The company’s dividend yield, steady cash flows, and reaffirmed 2025 guidance provide confidence that payouts will continue. Growth prospects are not explosive, but that has never been the core of Enbridge’s story. Instead, it is about dependable returns, backed by infrastructure that is critical to North America’s energy network.
That said, investors should weigh the trade-offs. Debt levels are high, and capital spending remains significant. Future performance will hinge on execution, regulatory approvals, and the broader energy transition. The stock may not deliver rapid capital gains, but as a cornerstone for income-focused portfolios, it still holds appeal.
