Enbridge (ENB -0.09%) is an elite dividend stock. The Canadian energy infrastructure giant offers investors a big-time yield (6.2% versus 1.7% for the S&P 500 index). On top of that, the company has steadily increased that payout over the years.

Enbridge recently announced its latest dividend payment, which is 3.2% higher than the current level. With this increase, the company has now given its investors a raise for 28 straight years. That's an elite growth track record, especially in the volatile energy sector.

Meanwhile, with a growing backlog of capital projects, Enbridge should have plenty of fuel to continue increasing its ultra-high-yielding dividend in the coming years. That makes it an attractive option for income-focused investors.

Expecting another good year

Enbridge recently unveiled its 2023 outlook. The company expects to generate 15.9 billion-16.5 billion Canadian dollars ($11.7 billion-$12.2 billion) of earnings before interest, taxes, depreciation, and amortization (EBITDA). That's about 5% above its 2022 forecast that EBITDA would be in the top half of its CA$15 billion-CA$15.6 billion ($11.1 billion-$11.5 billion) range. While that's slower than the 9% EBITDA growth Enbridge delivered this year, it's on track to expand earnings at an 8% compound annual rate since 2021.

Meanwhile, the company expects to produce between CA$5.25 and CA$5.65 ($3.88-$4.17) per share of distributable cash (DCF) flow next year. That's about 2% ahead of its projected DCF this year, which it sees coming in at just above the midpoint of its CA$5.20-C$5.50 ($3.84-$4.06) per-share range. Again, while that's slower than the nearly 8% DCF per-share growth Enbridge will deliver this year, it's on pace to grow cash flow at a 5% compound annual rate since 2021.

Growth drivers include strong utilization and higher rates at many of its existing assets. In addition, the company will benefit from recently completed expansion projects and increased ownership of some core pipelines.

That forecast gave Enbridge the confidence to increase its dividend to an annualized rate of CA$3.55 ($2.62) per share, 3.2% higher than 2022's level. That would put its dividend payout ratio at a comfortable 65%, well within its 60% to 70% target range.

The fuel to continue growing

Enbridge expects to invest another roughly CA$5 billion ($3.7 billion) on expansion projects this year. That's part of a CA$17 billion ($12.6 billion) backlog of secured capital projects it has underway that should power growth over the next few years.

The company has secured CA$8 billion ($5.9 billion) of organic growth projects this year, significantly increasing its long-term growth visibility. These projects run the gamut from natural gas pipelines, additional oil storage capacity, offshore wind farms in Europe, and natural gas utility expansions.

The company expects to complete over CA$3 billion ($2.2 billion) of expansion projects in 2023, which will help power earnings growth in 2024. That positions the company to deliver on its longer-term outlook of growing DCF per share at a 5% to 7% annual rate through at least 2024.

It has all the funding needed to invest in expansion projects and pay its dividend next year. Because of that, Enbridge expects to end next year with a leverage ratio in the lower half of its target range.

That's giving the company additional flexibility to repurchase stock. Enbridge could buy back up to CA$1.5 billion ($1.1 billion) of its shares in 2023. It could grow its DCF at a faster per-share rate by reducing its outstanding shares.

Enbridge also has the financial flexibility to make acquisitions as opportunities arise. Over the past year, the company has increased its interest in two key oil pipelines and purchased an onshore renewable energy project developer in North America. Future deals could boost its growth rate and give it more fuel to grow the dividend.

An excellent stock for collecting passive income

Enbridge offers income investors the best of both worlds. The energy infrastructure behemoth has a high-yielding payout that has steadily increased over the years. It should have plenty of fuel to continue growing that big-time dividend, making it a great stock to buy and hold for its attractive income stream.