By Sneha Nahata at The Motley Fool Canada
Enbridge (TSX:ENB) has been one of the top TSX stocks for steady dividend income. Moreover, shares of this energy infrastructure company have delivered decent capital gains in the recent past. For instance, Enbridge stock has risen roughly 11.6% so far in 2026 and has delivered an average annual growth rate of about 18% over the past three years.
Much of this upward momentum in ENB stock has been driven by strong utilization across its liquids pipeline network, which continues to generate predictable fee-based revenue. At the same time, the company’s large backlog of capital projects will likely support steady earnings expansion, strengthening its growth outlook.
In addition, rising demand for electricity from data centers and artificial intelligence (AI) workloads and energy transition opportunities augur well for ENB’s growth.
Enbridge to deliver steady growth in 2026
Enbridge’s diversified portfolio, spanning liquids pipelines, gas storage, utilities, and renewable power, positions it to benefit from rising energy demand while limiting exposure to commodity price volatility. Enbridge continued to deliver steady growth despite tariffs and ongoing geopolitical tensions thanks to its low-risk commercial framework, including long-term contracts and regulated assets that provide consistent cash flow.
Management has reaffirmed its financial outlook for 2026, projecting adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the range of $20.2 billion to $20.8 billion and distributable cash flow (DCF) per share between $5.70 and $6.10. For the 2023–2026 period, Enbridge projects its adjusted earnings per share (EPS) to grow by 4–6%.
Beyond 2026, Enbridge’s management anticipates adjusted EBITDA, EPS, and DCF per share to increase by about 5% annually. This outlook suggests that the company’s asset base and contract structure should continue generating steady earnings as new projects come online and existing infrastructure operates at higher utilization levels.
A major driver of this visibility is the company’s secured capital backlog, which currently stands at about $39 billion. These projects span natural gas transmission and distribution, liquids pipelines, and renewable power initiatives, positioning the company to capture rising energy demand across North America. Because much of this backlog is supported by long-term agreements or regulated frameworks, the future revenue streams associated with these investments are relatively predictable, which supports the investment case.
Enbridge stock is a buy for income and growth
Enbridge’s reliable payouts, consistent dividend increases, high yield, and solid growth opportunities make it a compelling choice for income and growth investors. It has paid dividends for more than 70 years and has increased its quarterly dividend since 1995.
Supporting Enbridge’s growth and payouts is its high-quality assets and strong operating structure. A significant portion of ENB’s EBITDA comes from regulated operations or long-term take-or-pay contracts. This structure reduces its exposure to commodity price volatility and allows Enbridge to maintain consistent revenue even when energy prices fluctuate.
Notably, Enbridge operates one of the largest energy infrastructure systems in North America, linking major supply basins with key demand centres. This vast network drives high asset utilization and strengthens the company’s competitive position.
Further, Enbridge is advancing more than 50 data-centre-related opportunities across North America and expects to approve additional projects that support power generation and data-centre energy needs starting in 2026 and beyond. The rapid expansion of AI computing and digital infrastructure is increasing electricity demand, creating new opportunities for companies like Enbridge. At the same time, Enbridge is focusing on capital-efficient expansion through brownfield investments.
Overall, its large, secured project backlog, diversified asset base, ongoing energy transition investments, and opportunities driven by AI provide a solid foundation for growth. Moreover, its growing earnings will drive higher dividend payments.
The post Should You Buy, Sell, or Hold Enbridge Stock in 2026? appeared first on The Motley Fool Canada.
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Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.
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