Enbridge Boosts Dividend, Issues Upbeat 2026 Financial Outlook
Energy infrastructure giant signals confidence with a 3% dividend hike and forecasts significant EBITDA growth, driven by its expanding U.S. gas utility business.
Enbridge Inc. (NYSE: ENB) signaled strong confidence in its future earnings power Tuesday, announcing a 3% increase to its quarterly dividend alongside a robust financial outlook for 2026 that points to sustained growth from its vast energy pipeline and utility network.
In a statement that bolstered its appeal to income-focused investors, the Calgary-based company raised its quarterly payout to $0.97 per share, marking its 31st consecutive annual dividend increase. The move was underpinned by guidance forecasting 2026 adjusted EBITDA in a range of $20.2 billion to $20.8 billion. The company also projected distributable cash flow (DCF) per share, a key metric for pipeline operators, to land between $5.70 and $6.10.
The projections suggest continued momentum for the nearly $107 billion energy giant, which also reaffirmed its 2025 guidance, expecting to finish the year in the upper half of its previously stated EBITDA range of $19.4 billion to $20.0 billion.
Shares of Enbridge traded modestly higher in Tuesday's session at $48.18. The company's stock has become a mainstay in dividend portfolios, currently offering a substantial yield of approximately 7.6%.
At the core of Enbridge's optimistic forecast is the successful integration and performance of its recently acquired U.S. gas utilities. The company has invested heavily to become a major natural gas distributor in North America, a strategy that is beginning to yield predictable, regulated returns. Management recently pointed to positive rate case settlements for its utilities in North Carolina and Utah as key drivers of future revenue stability and growth.
"Our integrated asset base is performing well, and we remain on track to achieve our 2025 financial guidance," the company noted in its official release. The strategy leverages long-term contracts and regulated utility models to insulate cash flows from the volatility of commodity prices.
The 2026 forecast represents a roughly 4% increase from the midpoint of the company's 2025 guidance. Enbridge also outlined a plan to deploy approximately $10 billion in growth capital in 2026, with about $8 billion in new projects expected to become operational during the year. Looking beyond 2026, the company anticipates annual growth of approximately 5% for adjusted EBITDA and other key financial metrics.
Wall Street analysts maintain a cautiously optimistic consensus on the stock. Among 23 analysts covering Enbridge, there are 11 'Buy' or 'Strong Buy' ratings and 11 'Hold' ratings, with a mean price target of $47.03, just below its current trading level. The company's ability to execute on its capital projects and manage its debt, which it expects to hold within a target range of 4.5x to 5.0x debt-to-EBITDA, will be critical to meeting its long-term objectives.
As one of North America's largest energy infrastructure players, Enbridge's performance is often viewed as a bellwether for the broader energy transportation sector. Its latest guidance and dividend hike send a clear message that management sees a stable and profitable path forward, leveraging its diversified assets across both legacy liquids pipelines and a growing natural gas utility franchise.