Canadian energy giant, Enbridge Inc (TSE: ENB) (NYSE: ENB) declared a 3 per cent increase in its quarterly dividend for investors, moving from CAD$0.915 per share to CAD$0.9425 per share, as part of its 2025 financial guidance.
This adjustment brings the annual dividend to CAD$3.77 per share. This offers a yield of approximately 6.22 per cent based on the current share price. Announced on Wednesday, this marks the 30th consecutive annual dividend increase for Enbridge, a testament to its commitment to shareholder returns.
The company’s dividend policy has historically been focused on providing consistent growth, with a compound annual growth rate (CAGR) of 10 per cent over the past 29 years. Furthermore, the company’s payout ratio is designed to stay within 60 per cent to 70 per cent of distributable cash flow (DCF), which balances growth with financial stability.
Enbridge also reaffirmed its financial guidance for 2024, stating it expected to meet its targets for the 19th consecutive year. Enbridge also reported GAAP earnings of CAD$1.3 billion or $0.59 per common share in Q3 of 2024.
Looking ahead to 2025, Enbridge anticipates a 9 per cent increase in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This guidance reflects the company’s ongoing strategic initiatives and investments, particularly in infrastructure that supports energy transition.
Enbridge’s business model is evolving through significant investments in natural gas, renewable energy, and energy transition projects.
This diversification strategy drives financial growth while aligning with broader environmental goals.
Chart courtesy of Enbridge.
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Enbridge prioritizes debt management
The company enhances operational efficiency by leveraging technology, including AI in collaboration with Microsoft, to improve safety. It also aims to reduce emissions, and optimize asset management, which could lead to further cost savings. Enbridge also prioritizes managing its debt.
“Global oil consumption has rebounded to all-time highs and increasing natural gas demand is being driven by LNG growth, coal to gas switching and the rapid increase in electric power demand stemming from new datacenter developments,” said Greg Ebel, president and CEO of Enbridge.
“Enbridge’s incumbent footprint across its four core businesses puts the Company in an unparalleled position to meet increasing conventional and new energy demand in North America and beyond.”
Ebel continued in saying that the company will continue to play a leading role in delivering safe and affordable energy as the world continues to go through significant shifts in the way it generates and uses electricity.
Enbridge generated positive investor sentiment by consistently increasing dividends and providing strong financial guidance, which investors have welcomed.
The response on social media demonstrates confidence in the company’s long-term dividend growth and financial stability. Despite facing challenges such as regulatory changes and market volatility, Enbridge’s strategic positioning in both traditional and renewable energy sectors presents opportunities for sustained growth and resilience.
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