This Durable 5.2%-Yielding Dividend Stock is as Dependable as They Come

Enbridge (NYSE: ENB) recently closed the books on 2025 by reporting its fourth-quarter and full-year financial results. The Canadian pipeline and utility company reported record earnings and cash flow. It also achieved its financial guidance for the 20th year in a row. The company's predictable and steadily rising earnings have enabled it to increase its dividend for 31 consecutive years.

The energy company's low-risk business model and visible growth profile position it to continue increasing shareholder value. These features make it an excellent income stock to buy and hold long-term.

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As steady and predictable as they come

Enbridge generated 20 billion Canadian dollars ($14.7 billion) of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) last year. That was up 7% from the prior year. Meanwhile, the company produced CA$12.5 billion ($9.2 billion) of distributable cash flow, a 4% increase from 2024. The company's growing earnings enabled it to raise its dividend by 3% for 2026, pushing its yield to 5.2%.

The energy infrastructure company benefits from its low-risk business profile that drives predictable financial results. Stable cost-of-service agreements and long-term contracts underpin 98% of the company's earnings. That provides Enbridge with a rock-solid earnings foundation to build upon.

Meanwhile, the company got a boost from several organic growth drivers in 2025, including higher rates and increased utilization across its platform. Enbridge also benefited from placing CA$5 billion ($3.7 billion) of organic growth capital projects into service over the past year. Additionally, the company closed its acquisition of an interest in the Matterhorn Express Pipeline last year.

More growth coming down the pipeline

Enbridge pays out between 60% and 70% of its stable cash flow in dividends. That enables it to retain billions of dollars in excess cash to reinvest in expanding its operations. Enbridge also has a strong investment-grade balance sheet, which provides it with additional financial flexibility to fund its growth. The company has CA$10 billion to CA$11 billion ($7.3 billion-$8.1 billion) in annual investment capacity.

The energy company secured CA$14 billion ($10.3 billion) of new expansion projects last year, increasing its backlog to CA$39 billion ($28.6 billion). It recently added a couple more solar energy investments, as well as new gas utility growth capital projects and oil and gas pipeline expansions. It has secured growth capital projects with in-service dates through 2033. Enbridge expects to approve another CA$10 billion to CA$20 billion ($7.3 billion-$14.7 billion) of expansion projects over the next two years, further enhancing its growth visibility.

Enbridge's stable earnings and secured project backlog give it lots of visibility into its earnings growth potential. The company expects to deliver around 3% growth in its distributable cash flow per share this year and about 5% annual growth beyond 2026, supporting a similar dividend growth rate.

An income stream you can bank on

Investors can count on Enbridge to deliver a steadily rising dividend. The company has achieved its financial guidance for 20 straight years, while increasing its dividend for 31 years in a row. With a strong financial profile, a low-risk business model, and ample growth on the horizon, the company should have no trouble continuing to increase its dividend.

Matt DiLallo has positions in Enbridge. The Motley Fool has positions in and recommends Enbridge. The Motley Fool has a disclosure policy.