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How Lucrative is Enbridge's Dividend Yield Compared to the Industry?

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Key Takeaways

  • ENB offers a 5.9% dividend yield, above the industry average, supported by stable fee-based revenues.
  • ENB has over C$30B in secured projects across pipelines, gas transmission, renewables and storage.
  • ENB has raised dividends for 31 straight years, with added cash flows expected as new projects come online.

Enbridge Inc. (ENB - Free Report) is a leading midstream energy player that generates stable fee-based revenues. Due to the very nature of the business model, the company is not vulnerable to the volatility in oil and natural gas prices.

ENB is also well-positioned to generate incremental cash flows for shareholders. This fact is getting reflected in the midstream giant’s more than C$30 billion in secured capital projects. This includes projects related to liquid pipelines, gas transmissions, renewables and gas distribution & storage.

Once the projects come online, ENB will generate additional cash flows to support shareholders’ dividend payments. In fact, Enbridge has been rewarding shareholders with dividend hikes for 31 consecutive years.

The current dividend yield of ENB is 5.9%, which is higher than the average of 5.36% of the composite stocks belonging to the industry. In fact, ENB’s three-year median dividend yield of 6.66% is also higher than the 6.06% yield of the industry’s composite stocks, reflecting the handsome yield of the midstream energy major.

Dividend Yields of KMI & WMB are Lower Than ENB

Kinder Morgan Inc. (KMI - Free Report) and Williams (WMB - Free Report) are two other leading midstream players. Both KMI and WMB are well-known transporters of natural gas, thus well-positioned to capitalize on the growing clean energy demand. Despite that, the dividend yields of both KMI and WMB, of 4.35% and 3.36%, respectively, are lower than ENB’s yield.

ENB’s Price Performance, Valuation & Estimates

Shares of ENB have jumped 10.4% over the past year compared with the 7.8% improvement 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 14.76X. This is above the broader industry average of 13.63X.

Zacks Investment Research Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ENB’s 2025 earnings hasn’t seen any revisions over the past 30 days.

Zacks Investment Research Image Source: Zacks Investment Research

Enbridge 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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