Over the past decade, Enbridge (ENB) has generated strong total returns for shareholders through a combination of steady capital appreciation and growing dividend payouts. The pipeline operator remains a top choice for income-focused investors seeking reliable yields and long-term growth.
- 10-year stock CAGR: 8.7%
- Dividend increase streak: 29 consecutive years
- Current dividend yield: 6.1%
- 2024 AFFO: $5.8 billion
- Payout ratio: 72%
- BBB+ credit rating (S&P)
Enbridge (ENB) has delivered a compound annual growth rate of approximately 8.7% in its stock price over the last ten years, significantly outperforming the broader energy sector average. This growth has been complemented by a consistent dividend increase strategy, with the company raising its quarterly payout for 29 consecutive years, including a 6.2% hike in Q4 2024. The current dividend yield stands at 6.1%, making it one of the most attractive income stocks in the utilities sector. The company's diversified portfolio of natural gas and liquids pipelines, spanning North America, supports stable cash flows and robust payout coverage. In 2024, Enbridge reported adjusted funds from operations (AFFO) of $5.8 billion, with a payout ratio of 72%, indicating strong financial health and sustainability of its dividend. The company also maintained a strong investment-grade credit rating, with a BBB+ rating from S&P, which supports continued access to capital at favorable rates. Investors have benefited from both income and capital gains, with the total return on ENB stock—factoring in reinvested dividends—reaching approximately 12.4% annually over the past decade. This performance has attracted significant interest from institutional investors and dividend growth funds, particularly those focused on infrastructure and utility equities. The stock's resilience during periods of energy market volatility underscores its defensive positioning. Even amid macroeconomic uncertainty in 2023 and 2024, ENB's share price remained relatively stable, supported by long-term contracts and a regulated business model. As energy transition initiatives progress, Enbridge's strategic investments in renewable projects and hydrogen infrastructure are expected to further diversify its revenue streams.