Enbridge (TSX:ENB) Lifts Dividend As Its Undervalued Narrative Faces A Fresh Test

Why Enbridge’s Dividend Track Record Matters Now

Enbridge (TSX:ENB) has just extended its dividend streak again, raising the payout 3% in December 2025 for the 31st consecutive year while keeping distributable cash flow coverage intact.

That step keeps the spotlight firmly on the pipeline operator’s income profile and on how its $41b secured capital program and debt plans through 2026 intersect with shareholder payouts.

Recent headlines around Enbridge’s $41b secured project backlog and fresh U.S. pipeline acquisitions landed during a choppy spell for the shares, with the 90-day share price return down 15.11% even as the 1-year total shareholder return sits at 6.62% and the 5-year total shareholder return at 77.48%. This suggests that long-term holders have seen resilient income plus price gains while shorter term momentum has faded.

Scan income-focused peers that echo Enbridge’s mix of yield and large project pipelines with the curated 3 dividend fortresses to see what else fits your watchlist.

After a long run that left 5-year holders well ahead, but a 90-day slide that reset expectations, is Enbridge offering more upside from here, or has most of the payoff already shown up?

Most Popular Narrative: 15% Undervalued

On the latest numbers, Enbridge closed at CA$67.43 while the most followed narrative pegs fair value at CA$79.11 using a 6.76% discount rate, which points to a material gap that dividend investors will want to understand.

The planned $10 to $11b of average annual self funded investment capacity, supported by free cash flow after dividends and incremental debt within the 4.5x to 5.0x leverage range, gives Enbridge room to keep building its asset base, which can support long term growth in cash flow and net income.

See why 287 investors see Enbridge as 15% undervalued.

Result: Fair Value of CA$79.11 (UNDERVALUED)

Still, Enbridge’s elevated leverage and the recent CA$3.0b equity raise mean that project delays or weaker returns could quickly challenge this 15% undervalued narrative.

Find out about the key risks to this Enbridge narrative.

Next Steps

If this Enbridge story feels finely balanced between concern and optimism, move quickly to review the full set of signals and shape your own stance with the 2 key rewards and 2 important warning signs.

Looking For More Ideas Beyond Enbridge?

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