A demand shock in the energy sector similar to 2020 could happen again this year. U.S. tariffs and changing threats could slow global economic growth and reduce oil demand. Fortunately, a TSX dividend stock stands tall amid the trade confusion.
Enbridge (TSX:ENB) is the top-of-mind choice if you prioritize passive income over capital appreciation. This large-cap energy constituent is a solid bond proxy investment. You have your answer if you’re targeting at least $3,000 extra income yearly. At $61.91 per share, the dividend yield is 6.1%. The table below shows how many ENB shares you must accumulate to meet your financial goal.
| Company | Recent Price | No. of Shares | Dividend/Share | Total Payout | Frequency |
| Enbridge | $61.91 | 807 | $3.72 | $3,002.04 | Quarterly |
A $49,961.71 investment, equivalent to 807 shares, will generate $3,002.04. Since ENB’s payout frequency is quarterly, you’d receive $750.51 every quarter. The example illustrates you can start small and create wealth over time by building a powerful passive income portfolio today.
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Dividend grower
Enbridge, a $134.6 billion pipeline company, is in the spotlight because of concerns regarding dividend sustainability. Remember, this dividend grower has raised dividends for 30 consecutive years. Furthermore, its mainline network is the largest oil pipeline system in North America, and it also owns the largest natural gas utility in the region.
According to its CEO, Greg Ebel, U.S. tariffs on Canadian oil would need to last several years to significantly impact the volume of crude American imports from Canada. “It would take a very long time of sustained tariffs before you see changing trade patterns and flow patterns, just given the nature of where that product is going to serve, largely serving U.S. refineries,” he said. “It would be very difficult for them to find other sources of supply.”
Ebel’s statements indicate that the tariff issue is not particularly material and should ease investors’ fears. Ensuing dividend increases might not be as high as before, although the growth streak should continue. Enbridge’s business model and diversified business mix are competitive advantages. The four core franchises, liquids pipelines, gas transmission, gas distribution and storage, and renewable power have visible growth potential.
Growth outlook
In 2024, adjusted earnings and distributable cash flow (DCF) increased 5.1% and 6.4% year-over-year respectively to $6 billion and $12 billion. Besides the record EBITDA ($18.6 billion) and DCF, the energy major met or exceeded its financial guidance for the 19th straight year.
Enbridge has a positive growth outlook because of a secured capital program and backlog. The $23 billion of projects entering service through 2027 will drive annual EBITDA growth further. There’s growth visibility until the second half of the decade due to an estimated $50 billion opportunity set from power demand-related projects and Permian expansions.
At year-end 2024, Enbridge has $9 billion to $10 billion of annual investment capacity (equity self-funding). The good news to investors is the dividend growth guidance of 3% in 2026 and up to 5% in post-2026.
Dependable income
In a nutshell, Enbridge delivers predictable cash flow growth, has a low-risk business, and offers strong, healthy returns. If you desire a $3,000 yearly income in the future, use your free cash to amass ENB shares.
