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How to Earn $500 a Month From Enbridge Stock
Key Points
Enbridge’s midstream business is well-insulated from volatile commodity prices.
It’s consistently raised its dividends for over three decades.
Enbridge (NYSE: ENB), which is based in Canada, operates over 70,000 miles of pipelines and smaller feeder lines in North America. As a midstream company, Enbridge generates most of its revenue by charging upstream extraction companies and downstream refineries tolls for using its infrastructure. That business model is well insulated from fluctuating oil and gas prices because it merely needs those resources to flow through its pipes to generate stable profits.
Image source: Getty Images.
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From 2021 to 2025, Enbridge's distributable cash flow (DCF) per share rose from $4.96 CAD to $5.71 CAD. For 2026, it expects that figure to rise to $5.70-$6.10 CAD per share, which will easily cover its forward dividend rate of $3.88 CAD ($2.78) per share. It's raised its dividend annually for 31 consecutive years. It currently pays a forward dividend yield of 5.3%.
Enbridge's scale and stability make it a great play for conservative income investors. At its current exchange rate, a $112,300 investment in Enbridge would generate about $6,000 in annual income -- or roughly $500 per month (paid as quarterly dividends). It's not an exciting stock, but it's a great investment that delivers steady dividends, gives you some exposure to the power-hungry cloud and AI markets, and isn't too exposed to volatile commodity prices.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Enbridge. The Motley Fool has a disclosure policy.