Enbridge (ENB +0.02%) has an elite track record. The Canadian pipeline and utility company has increased its dividend for 31 consecutive years (in Canadian dollars) and achieved its annual financial guidance for 20 years in a row. The company reported record financial results last year, continuing its steady growth.
The energy company has ample fuel to continue growing its earnings and dividends. That was evident in the long list of new growth capital projects it has added to its backlog in recent months. That visible growth makes Enbridge a great pipeline stock to buy and hold for income and growth potential.
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Adding more fuel to its growth engine
Enbridge placed 5 billion Canadian dollars ($3.7 billion) of growth capital projects into commercial service last year. Those expansions helped grow its cash flow per share by 4%, allowing the company to increase its dividend by another 3%. They also support its expectations of growing earnings by more than 3% this year, at the midpoint of its guidance range.
The company more than replaced the projects it placed into service last year, sanctioning CA$14 billion ($10.2 billion) of new expansions throughout 2025. That includes several recent project approvals:
- Mainline Optimization Phase 1 (MLO1): A $1.4 billion project to increase the capacity of its Mainline and Flanagan South Pipeline systems, which should enter commercial service in 2027.
- Cowboy Phase 1: A $1.2 billion solar energy investment and battery storage facility in Wyoming to support a large technology company's operations that should start-up in 2027.
- Easter: A $400 million wind project to support Meta Platform's data center operations that should begin producing later this year.
These projects added to a long list of expansions already in Enbridge's backlog. It now has CA$39 billion ($28.5 billion) of projects underway that should enter commercial service through 2033. It has projects spanning each of its four core franchises (liquids pipelines, gas transmission, gas distribution and storage, and renewable power).
NYSE: ENB
Key Data Points
Many more growth projects are in the pipeline
Enbridge has an even bigger list of potential projects under development. It's currently pursuing opportunities valued at upwards of CA$50 billion ($36.5 billion) that it could secure by 2030. It sees the potential to sanction another CA$10 billion to CA$20 billion ($7.3 billion-$14.6 billion) in new projects over the next 24 months. It has potential projects across all its franchises, including MLO2 & 3, Cowboy Phase 2, and multiple gas pipeline and distribution expansion opportunities.
The company's secured backlog and massive growth opportunity set drive its high confidence in its long-term growth outlook. Enbridge expects its cash flow per share growth rate to accelerate to around 5% annually after 2026. That should support continued dividend growth of up to 5% per year.
High octane total return potential
Enbridge offers investors a compelling blend of income and growth. With its dividend yielding 5.5% and its earnings growing by 5% annually starting next year, the company could deliver double-digit total annual returns to investors. That high total return potential makes it look like a great long-term investment opportunity.
