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If youâre looking for reliable income from your portfolio, you know how rare it is to find a trustworthy dividend stock offering an over 6% yield that also looks sustainable. Many high-yield stocks come with baggage such as inconsistent earnings growth trends, high debt levels, or exposure to volatile sectors. Thatâs why it’s important to dig deeper.
In this article, Iâll reveal a top Canadian dividend stock Iâm buying for its attractive yield and explain why Iâm comfortable buying and holding it for decades.
A top dividend stock to hold for decades
That leads me to Enbridge (TSX:ENB), a top dividend-paying stock offering stability and a hefty dividend that Iâve already locked in for the long term. If you donât know it already, it is a major energy infrastructure firm that operates one of the largest pipeline networks in North America, transporting crude oil, natural gas, and also generating renewable power.
After rallying 24% over the last year, ENB stock is currently trading at $60.32 per share, with a market cap of $131.5 billion. At this market price, it has an impressive 6.3% annualized dividend yield, distributed quarterly.
Latest financials show why I trust this dividend stock
The recent upward move in this dividend stock is mainly backed by its resilient business model and consistent earnings performance. In the first quarter of 2025, Enbridgeâs adjusted earnings climbed by 12% YoY (year-over-year) to $1.03 per share. Similarly, its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at $5.8 billion, reflecting a solid 18% YoY jump. That growth was driven mainly by stronger utilization across its pipeline systems, including record Mainline volumes, improved toll structures, and new contributions from recent acquisitions.
In the latest quarter, the energy infrastructure firm also benefited from colder weather conditions and rate increases that helped lift its gas distribution and storage earnings. In addition, Enbridgeâs recent U.S. gas utility acquisitions and favourable exchange rate further helped boost its overall results.
Although higher financing costs and increased maintenance capital slightly weighed on Enbridgeâs distributable cash flow last quarter, it still rose 9% YoY to $3.8 billion, which could be seen as a good sign for its dividend sustainability.
Projects and capital discipline built for the long term
Interestingly, Enbridge plans to invest up to $2 billion into its Mainline pipeline through 2028 to improve reliability and handle future demand. Itâs also expanding its U.S. natural gas footprint with the recently sanctioned Traverse Pipeline and its new 10% stake in the Matterhorn Express. On top of that, the company is diversifying with solar projects like Orange Grove and Sequoia in Texas.
What ties it all together is its disciplined capital allocation. With $9 to $10 billion in annual investment capacity and a payout target of 60% to 70% of distributable cash flow, Enbridge has the tools and the strategy to keep rewarding investors, even when markets get unpredictable.
Itâs this combination of reliable cash flow, proven dividend strength, and a clear path for future growth that makes me confident about owning this dividend darling and holding it for decades.
The post 6.3 Percent Dividend Yield! Iâm Buying This Dividend Darling and Holding for Decades appeared first on The Motley Fool Canada.
Should you invest $1,000 in Enbridge right now?
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More reading
- RRSP Investors: 3 Canadian Dividend Stocks to Buy Hand Over Fist
- 2 TSX Dividend Stocks to Own for TFSA Passive Income
- TFSA Income: How to Boost Returns While Reducing Risk
- 2 High-Yield TSX Stocks for TFSA Passive Income
- Retirees: 2 TSX Stocks to Own for Dividend Growth in a TFSA
Fool contributor Jitendra Parashar has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.
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By: Jitendra Parashar
Title: 6.3 Percent Dividend Yield! I’m Buying This Dividend Darling and Holding for Decades
Sourced From: www.fool.ca/2025/07/08/6-3-percent-dividend-yield-im-buying-this-dividend-darling-and-holding-for-decades/
Published Date: Tue, 08 Jul 2025 19:30:00 +0000
