Valued at a market cap of $147 billion, Enbridge (TSX:ENB) is among the many hottest shares in Canada. For the reason that begin of 2001, the TSX inventory has returned over 500% to shareholders. Nonetheless, if we alter for dividend reinvestments, cumulative returns are nearer to 1,700%. It means a $1,000 funding in ENB inventory again in 2001 could be value over $18,000 immediately.

Regardless of its market-beating beneficial properties, Enbridge presents shareholders a tasty dividend yield of 5.7%, given an annual payout of $3.78 per share in 2025. Let’s see if the TSX dividend inventory can proceed to ship outsized returns over the following few years.

The bull case of investing in Enbridge inventory

Enbridge stands out as one in every of North America’s most important power infrastructure corporations, transferring roughly 30% of the continent’s crude oil and transporting almost 20% of the pure fuel consumed in the US.

The Calgary-based firm operates via 4 most important segments: liquids pipelines, fuel transmission, fuel distribution and storage, and renewable energy era. This diversified enterprise mannequin generates remarkably predictable money flows with minimal commodity value publicity.

What makes Enbridge engaging for buyers is its monitor report of stability and progress. The corporate has achieved monetary steering for 19 consecutive years and elevated its dividend for 30 straight years, incomes the Dividend Aristocrat standing.

It maintains a sustainable payout ratio of 60-70% of distributable money circulate and has returned roughly $35 billion to shareholders over the previous 5 years, with plans to return $40-45 billion over the following 5 years.

Latest accomplishments embody closing an enormous $19 billion acquisition of three U.S. fuel utilities and inserting $7 billion of capital into service. Enbridge is strategically positioned for the power transition, connecting to all working U.S. Gulf Coast LNG terminals whereas constructing out renewable power capability. The corporate has secured $29 billion in capital backlog centered on low-risk, brownfield growth tasks that ought to drive regular progress.

Enbridge can also be dedicated to sustainability, focusing on net-zero emissions from operations by 2050 whereas investing in hydrogen, renewable pure fuel, and carbon seize applied sciences. With its mixture of secure dividends, modest progress, and important infrastructure belongings, Enbridge presents buyers a defensive play on North American power demand.

A robust efficiency in Q2 of 2025

Enbridge delivered one other robust quarter, posting report second-quarter EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) pushed primarily by its not too long ago acquired U.S. fuel utilities and profitable fee settlements within the Gasoline Transmission enterprise.

The corporate’s strong first-half efficiency has administration assured it is going to end 2025 on the higher finish of its EBITDA steering vary whereas staying on monitor to fulfill distributable money circulate targets. The steadiness sheet additionally seems wholesome, with debt-to-EBITDA bettering to 4.7 instances because the acquired utilities contribute full quarters of earnings.

The Mainline continues to carry out exceptionally properly, transporting three million barrels per day in the course of the quarter and reaching apportionment in six of the primary eight months this 12 months.

Administration emphasised Enbridge’s stability throughout ongoing market volatility, noting that roughly 80% of EBITDA comes from belongings with income inflators or regulatory value restoration mechanisms. The enterprise has nearly no commodity value publicity and minimal tariff threat.

With 29 new knowledge centres inside 50 miles of its pure fuel techniques and connections to 100% of Gulf Coast working LNG export capability, Enbridge sits in a really perfect place to serve rising power demand whereas sustaining its 30-year streak of dividend will increase.

Analysts monitoring the TSX dividend inventory forecast adjusted earnings to broaden from $2.80 per share in 2024 to $4 per share in 2029. Its annual dividend is predicted to extend from $3.66 per share to $4.17 per share on this interval.

Given consensus value targets, ENB inventory trades at a 2% low cost in October 2025. If we alter for dividend reinvestments, cumulative returns might be nearer to 7.5% over the following 12 months.