Enbridge (TSX:ENB) is a prime Canadian pipeline operator I’ve pounded the desk on for a very long time — years, actually.

And searching on the inventory chart above, that decision has actually labored out for dividend buyers and progress buyers alike. Certainly, across the time of the pandemic, Enbridge’s yield popped into the high-single-digit vary and stayed there for fairly a while. The market believed the corporate would minimize its dividend, given the financial pressures that had been at play throughout that time period.

That stated, Enbridge has continued to energy alongside, because the power independence narrative continued to play out, and buyers regarded for tactics to play what may very well be an more and more insulated geopolitical atmosphere round power assets.

With a present dividend yield of virtually precisely 5.9%, let’s dive into why I believe this can be a dividend buyers would do nicely to lock in right here.

Historic precedent issues

Enbridge has been one of many Canadian dividend shares I’d put within the stalwart bucket, having raised its dividend for 30 consecutive years.

Now, the corporate’s total dividend-growth price has slowed to round 3% lately. And provided that buyers are presently getting an up-front yield of almost 6%, that form of small however significant dividend progress truly can add up, significantly over prolonged intervals of time.

What I’ve discovered with true bond-like proxies akin to Enbridge is that such corporations are price shopping for when the market beats down their share value (and their yield pops). That’s as a result of Enbridge has confirmed its capability to take care of and develop its dividend in various market environments, and I don’t see that altering anytime quickly.

Progress alternatives may come

When most buyers (and I’d embrace myself on this bucket) consider an organization like Enbridge, I actually don’t ascribe a lot when it comes to progress to my very own mannequin round this inventory.

Nonetheless, with administrations north and south of the border seemingly seeking to shore up power capability as AI and different power-hungry applied sciences surge in significance for the North American financial system, I may see a future the place extra pipeline approvals (which haven’t occurred in a few years) unfold.

In fact, we’ll need to see on this entrance. There’s danger to betting on progress with a mature firm like Enbridge, and there’s at all times some danger of some kind of shock to the market that might put the corporate’s dividend in danger.

That stated, when it comes to the stability of dangers and alternatives at play right here, I believe Enbridge seems like an important portfolio addition at present ranges.