Enbridge offers stable income but low dividend growth

Enbridge is a Canadian pipeline company known for its reliable dividends. The company has raised its dividend annually for 30 years, but growth has slowed recently. Investors are wondering if now is a good time to buy its stock. Enbridge operates mainly in the midstream sector, with approximately 75% of its earnings coming from oil and natural gas pipelines. It also owns regulated natural gas utilities, making it one of North America's largest distributors. This part of the business offers steady cash flow, aided by government regulations. Enbridge is also investing in clean energy, which makes up about 4% of its earnings, helping the company adapt to changing market demands. The current dividend yield for Enbridge is around 6%. This is appealing for those who prioritize steady income. Despite the slower growth of its cash flow—projected at 3% for 2025—Enbridge has been cautious with dividend increases. The company is still integrating its new gas utilities, which has limited growth. Looking ahead, management expects cash flow growth to improve in 2027. This could lead to larger dividend increases, rewarding investors who buy in now. Enbridge is not aiming to be a fast-growing company; instead, it focuses on stability and consistent returns through dividends. Overall, if you are a dividend-focused investor, now might be a suitable time to consider Enbridge stock for a steady income stream with potential growth in the coming years.