On the floor, Enbridge (TSX:ENB) inventory appears to be doing something however slumping. Shares of the power inventory are literally up 16% within the final 12 months. Nevertheless, after hitting all-time highs in 2025, shares have come again down. After hitting about $70 per share, Enbridge inventory is now down 7% because the finish of September. What’s extra, it hasn’t proven any rebound as of but.

So, what offers? Let’s have a look at what’s placing Enbridge inventory beneath strain, and if that strain is about to blow up or present elevate off.

What occurred?

Enbridge is a big North American power infrastructure firm. Its core companies embrace pipeline transport of crude oil and pure gasoline, gas-distribution utilities, and rising publicity to renewables and transition infrastructure. Even not too long ago the dividend inventory introduced multi-billion greenback upgrades to its “Mainline” crude oil pipeline system and made acquisitions in gasoline utilities.

But this has introduced up points. Regardless of its steady enterprise mannequin, some analysts imagine Enbridge is buying and selling at a premium relative to its friends or relative to the dangers. That makes traders cautious, particularly if the long run outlook dims. What’s extra, Enbridge has massive funding commitments, reminiscent of $2 billion for the Mainline improve to 2028. On the identical time, challenge price escalations elevate considerations about capital self-discipline.

Whereas Enbridge advantages from pipelines and gasoline distribution, the broader power sector is present process a transition. There may be rising regulatory, environmental and market strain on fossil-fuel infrastructure. One piece within the information is the authorized and environmental threat tied to its Line 5 pipeline beneath the Nice Lakes. If power coverage or allowing turns into tighter, the valuation premium for infrastructure corporations might shrink.

Is the dividend secure?

With all this into consideration, traders right now possible wish to know simply how secure the dividend is. For that, we have to dig into earnings. First off, the enterprise is toll-based, that means it earns charges from transporting power and never from oil costs themselves. That charge construction gives regular, predictable money move, even when crude costs swing wildly. About 98% of its earnings come from regulated or long-term contracted property, a key motive traders view it as steady revenue in any atmosphere.

Latest second-quarter earnings bolstered that the core enterprise stays strong. Adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) hit $5.2 billion, up 8% 12 months over 12 months. Plus, distributable money move hit $2.8 billion, with full-year DCF reaffirmed to between $5.40 and $5.80 per share.

So, as of now, that dividend yield of 5.7% appears secure, with 29 consecutive years of will increase. The payout ratio, nonetheless, exhibits there may be nonetheless work to be performed. Proper now, that ratio is at 130%, displaying that the corporate wants to extend earnings and money move to continue to grow its dividend and never get into bother.

Backside line

Enbridge matches the invoice for long-term traders targeted on steady, compounding revenue. Its pipelines and gasoline networks transfer 30% of North America’s crude oil and 20% of its pure gasoline, and people volumes received’t disappear in a single day, even amid an power transition. The dividend inventory continues to increase into low-carbon property like renewables, hydrogen, and carbon seize, giving it a bridge into the following period of power.

Nevertheless, massive acquisitions and capital spending require disciplined financing. If charges keep excessive, debt prices might strain money move. Tasks like Line 5 nonetheless face authorized challenges, which might result in one-time bills. Whereas Enbridge is adapting, any main shift away from hydrocarbons quicker than anticipated might restrict future pipeline progress. For now, income-focused traders can nonetheless choose up Enbridge inventory for a powerful long-term purchase, not a flashy progress choose.