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Enbridge's Dividend Payment: A 30-Year Promise That Keeps Paying

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Key Takeaways

  • ENB has increased its dividend annually for 30 years, reflecting its consistent shareholder returns.
  • Enbridge's pipeline network supports predictable cash flow, moving 20% of U.S. natural gas.
  • ENB sees 5% annual growth through 2030, boosting long-term dividend potential for shareholders.

Enbridge Inc. (ENB - Free Report) , a leading midstream energy player in North America, has a strong track record of returning capital to shareholders through dividend payments. For 30 consecutive years, the midstream energy giant has increased its dividends to reward shareholders, earning a prestigious position among the few dividend aristocrats in the energy space.

Enbridge Inc. Image Source: Enbridge Inc.

Unlike most energy companies, which are susceptible to oil and gas price volatility, Enbridge is consistently rewarding shareholders. This reflects a solid business model with predictable cash flows. This steady income allows ENB, which operates an extensive crude oil and liquids transportation network spanning 18,085 miles, to return a portion of its earnings to shareholders through regular dividend payments, even during volatile market conditions. Underscoring the strength of ENB’s midstream operations, its pipelines transport 20% of the total natural gas consumed in the United States.

Looking ahead, Enbridge believes it could achieve approximately 5% annual business growth through the end of 2030. This solidifies ENB’s strong business outlook, thereby securing incremental cash flows. Thus, long-term shareholders can expect steady and handsome dividends from the midstream major.

Are KMI & WMB Also Rewarding Investors Handsomely?

Kinder Morgan (KMI - Free Report) and Williams (WMB - Free Report) are also leading midstream energy players, thereby are less vulnerable to oil and gas price volatility. Despite their stable business models, both KMI and WMB currently reward investors with lower dividend yields than the industry’s composite stocks.

Kinder Morgan’s current dividend yield is 4.24%, lower than the industry’s 5.24% yield. Williams’ current dividend yield is 3.38%.

ENB’s Price Performance, Valuation & Estimates

Shares of Enbridge have gained 38% over the past year, outpacing the 35.1% rally of the composite stocks belonging to the industry.

Zacks Investment Research Image Source: Zacks Investment Research

From a valuation standpoint, ENB trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 15.04X. This is above the broader industry average of 13.89X.

Zacks Investment Research Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ENB’s 2025 earnings hasn’t been revised over the past seven days.

Zacks Investment Research Image Source: Zacks Investment Research

ENB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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Williams Companies, Inc. (The) (WMB) - free report >>

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