Enbridge's Dividend Has Grown for 31 Straight Years. Here's Why It Won't Stop.

Earning the title of Dividend King puts you in elite company, as not every company has the financial stability to have increased its dividend payouts for 50 or more consecutive years. Some companies in that class are household names, like Coca-Cola and Walmart.

Enbridge (NYSE: ENB) isn't a household name, nor is it a Dividend King. But with 31 years of consecutive dividend hikes, it's on the path to becoming one, making it a name for investors seeking income to familiarize themselves with.

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Different energy resources, one powerful strategy

Energy companies are sometimes overlooked as income investments, as stocks in the sector can be known for volatile price swings tied to commodity prices. That said, that's still a broad categorization of energy stocks.

Enbridge's all-of-the-above approach offsets some of the risk of being singularly focused on one energy solution through its broader portfolio. It also locks in long-term contracts, which helps it avoid commodity price swings.

Within that portfolio are its four main businesses: renewable energy, gas utilities and storage, natural gas pipelines, and liquid pipelines.

That helps it meet more specific needs, like it is doing with Meta Platforms. Meta has been working with Enbridge to power its data centers with solar energy, signing a 2025 contract to use all the solar energy produced by one of its facilities under construction in Texas. That relationship is also expanding, as Enbridge announced in May that it is working on a solar and battery energy storage project for another one of Meta's data centers in Wyoming.

With natural gas, Enbridge has over 50 potential opportunities with data centers on its radar. It's expected to pick which opportunities it wants to pursue in 2026 and 2027, so it'll be worth watching upcoming quarterly reports for updates. Its 2026 second-quarter earnings results are expected on July 31.

Reliability as a dividend payer

Enbridge provides critical energy services across North America, and establishing a crucial role helps ensure cash keeps flowing in to pay dividends. Not only is 30% of the crude oil produced in North America transported by Enbridge, but about 20% of the natural gas consumed in the U.S. is also transported by Enbridge.

One criticism often brought up about Enbridge, however, is that its large debt load could become increasingly expensive to service. The money that would usually go toward dividend payouts would instead possibly need to be used to pay lenders if Enbridge got into a financial crunch. But as often as the debt levels are mentioned when reviewing it as a dividend payer, it has still managed not only to pay a dividend for more than 70 years but also to increase it for 31 years. As of this writing, that dividend payout yields a favorable 5.1%.

One thing to note quickly is that Enbridge is based in Canada, so anyone analyzing it further should note that it reports in Canadian dollars. Also, the tax implications of holding Enbridge in a U.S. brokerage account differ and warrant research before making an investment decision.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Enbridge, Meta Platforms, and Walmart. The Motley Fool has a disclosure policy.