This Canadian Gem Offers a Rock-Solid 5.9% Dividend, Growing Annually

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While the

Canadian stock market

Recently reached its peak, yet macroeconomic uncertainty remains significant. Ongoing global trade tensions, tentative actions from central banks, and geopolitical risks persistently overshadow the wider investing landscape.

In such times, the significance of reliability

dividend-paying stocks

becomes clearer. Consistent earnings, even in

volatile markets

, might help stabilize your investment portfolio while also providing some level of protection against losses.

In this piece, I’ll highlight a leading Canadian dividend stock that presently boasts a 5.9% yield, backed by decades of steady payments and yearly hikes.

Table of Contents

A solid Canadian equity with dividends worth purchasing at present

The stock I’m referring to is

Enbridge

(

TSX:ENB

The Calgary-based firm, well-known among income-seeking investors for valid reasons, continues to warrant consideration, particularly amid today’s market conditions.

In the last year, the ENB stock price has risen by approximately 27%, now trading at $63.50 per share.

market cap

of $138.4 billion. The reliable stock offers a strong quarterly dividend, currently with an annualized yield of 5.9%. Its excellent track record of increasing dividends for 30 consecutive years reflects Enbridgeâs disciplined capital allocation and cash flow resilience.

What has been driving this surge?

The recent robust performance of ENB stock can largely be attributed to the company’s solid financial standing. In the most recent quarter, Enbridge experienced impressive growth, partly due to increased pipeline usage. Notably, their Mainline system reached an all-time high, transporting three point two million barrels of crude oil daily during this period. This underscores the essential role played by their services in facilitating energy distribution throughout North America.

Enbridge is likewise witnessing robust outcomes from its American natural gas pipelines. These operations benefit significantly from lengthy contract terms, ensuring steady revenue streams. Additionally, as Western Canada anticipates increasing crude output gradually, Enbridge is well-positioned to manage this expansion effectively.

Earnings on the rise

This operational robustness was evident in its most recent financial figures. During the initial quarter of 2025, Enbridge’s overall income increased by 67.6% compared to the same period last year, reaching $18.5 billion. Additionally, the company reported an adjustment for quarterly earnings that surged 12% from the previous year and climbed 37% from the prior quarter to reach $1.03 per share.

Likewise, a 9% year-over-year growth in distributable cash flow bolstered its ability to make dividend payments, demonstrating the firm’s effectiveness in controlling expenses even as it expands its profits.

Notably, even with some increases in its financing and maintenance expenses, Enbridge still reaffirmed its full-year outlook.

Key factors to consider for purchasing this Canadian dividend stock at present

In addition to consistent profits, Enbridge is also focusing on long-term growth. The company has recently invested more than $3 billion in new initiatives. This includes improvements to its Mainline system as well as the development of new natural gas pipelines across the United States.

A significant strategic decision involves investing in the Matterhorn Express Pipeline. This initiative facilitates the transportation of natural gas from the Permian Basin to the Texas Gulf Coast. Given the increasing demand for exporting natural gas, this can be viewed as a prudent advancement.

Definitely, Enbridge boasts a solid combination of consistent cash flow, expanding initiatives, and a regular dividend — positioning it as an excellent option for those aiming to include a dependable income-generating stock in their investment lineup.

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This Canadian Gem Offers a Consistent 5.9% Dividend That Grows Annually

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Is it wise to put $1,000 into Enbridge at this moment?

Prior to purchasing shares in Enbridge, keep this in mind:

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For investors looking to purchase now, Enbridge was not among those selected. However, several top stocks did make the list and have the potential to generate substantial returns over the next few years.

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Fool contributor

Jitendra Parashar

holds stakes in Enbridge. The Motley Fool endorses Enbridge. The Motley Fool has a

disclosure policy

.

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