Enbridge Inc. (TSX:ENB)(NYSE:ENB) has solidified its standing as a top-tier income investment by announcing its 31st consecutive annual dividend increase, projecting robust earnings for 2026, and confirming it will fund its capital program without requiring external equity. The announcement reinforces the stability that long-term shareholders have come to expect from the energy infrastructure leader.
The company released its 2026 financial guidance, forecasting adjusted earnings before interest, income taxes, and depreciation (EBITDA) to range between $20.2 billion and $20.8 billion. This positive outlook is driven by high asset utilization and approximately $8 billion in new projects entering service next year across its franchises. Management also anticipates distributable cash flow will settle between $5.70 and $6.10 per share. These figures support the company's medium-term targets, which aim for a compound annual growth rate of roughly 5% for key financial metrics beyond 2026.
For investors, the most immediate benefit is the declared 3% dividend hike, which raises the quarterly payout to $0.97 per share, or $3.88 on an annualized basis. With the stock currently yielding 6%, it provides a substantial income premium over the wider market. This payout is backed by a $10 billion capital deployment plan that prioritizes balance sheet strength, keeping the debt-to-EBITDA ratio firmly within the 4.5 to 5.0 target range.
Although the stock has risen 8% year to date, its primary allure remains its defensive characteristics. The reaffirmed guidance suggests Enbridge is well-positioned to navigate economic volatility while returning capital to shareholders. The stock is a great option for retirees and dividend-focused investors looking for reliable cash flow.
