Enbridge: Buy, Sell, or Hold in 2026?

Enbridge stock has jumped more than 10% since April to make a new high of $78.20. The price sure may give you cold feet, as the stock that you often saw trading in the $50–$55 range is suddenly edging towards $80. Enbridge is a fundamentally sound stock with stable dividend payments. It is strategically important for both America and Canada. But is this dividend stock worth buying at a 30% premium from its regular price of $55?

What is driving Enbridge’s price upwards?

For a long time, Enbridge stock has been range-bound. It is known for its stable dividends from the multiple toll booths it has developed through oil and gas pipelines. It even diversified its infrastructure to include gas storage, utility, and renewable energy projects.

The company is expanding rapidly, having secured $40 billion in capital expenditure for growth projects, most of which are focused on gas transmission, distribution, and storage. How much is $40 billion for Enbridge? Excluding the cost of building pipelines, its massive infrastructure earned $20 billion in operating profit in 2025. From this $20 billion, $12.4 billion is distributable cash flow, of which 60–70% is paid out in dividends.

Enbridge is now looking to invest twice its operating income in new projects, which is a healthy ratio. As new projects come online, they start contributing to operating profits and the company compounds its revenue streams. In 2025, it placed $5 billion worth of assets into service, which means they are now generating revenue and paying for themselves.

In this normal course of Enbridge’s business, the data centres comes as a catalyst with its enormous energy needs. Like any energy company, Enbridge is tapping the opportunity to supply natural gas from natural gas-fired power plants to data centres for their cooling and power needs. Moreover, Enbridge has also partnered with hyperscalers, like Meta and Amazon, for renewable energy projects. The cherry on top is the oil and liquified natural gas (LNG) export opportunity to Asia, Europe, and Africa.

All this explains Enbridge’s more than 60% share price rally in the last two years.

Can it grow further?

Yes. During the same period, TC Pipeline stock jumped 84% as it became a pure-play gas pipeline company. Pembina Pipeline stock jumped 33% as overall demand surged.

Is Enbridge stock a buy at its all-time high?

The energy transmission infrastructure sector has been on an uptrend, with a focus on natural gas. Until 2025, these stocks had restricted growth because building pipelines requires several approvals, and many times, some projects are scrapped midway due to delayed approvals or denials.

Energy infrastructure projects accelerated in the last two years as the Canadian government expedited the approval process for critical infrastructure.

Will Enbridge’s share price rally continue?

A majority of Enbridge’s projects are scheduled to come online over the next two years. The stock could be a buy when it sees some correction in the summer season. Remember, Enbridge has leverage on its balance sheet that prevents its share price from increasing rapidly. However, it maintains its debt at 4.5x to 5.0x its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which helps manage cash flow and dividends.

Is Enbridge stock a sell at its all-time high?

If you purchased Enbridge stock during the pandemic when it traded below $45, the stock is worth holding. You have already locked in more than an 8% dividend yield. Enbridge is in a favourable environment and is preparing to unleash the potential of the transition to natural gas. Once the natural gas infrastructure is in place and Enbridge has diversified its revenue streams, shareholders could reap the benefits of higher dividend growth.

Final verdict

Enbridge is an evergreen stock to hold for its dividend stability and growth. However, it might be risky to buy the stock at its all-time high of $78. Investors could consider buying the stock when it falls to $70 as the uncertainty from the US-Iran war eases.

The post Enbridge: Buy, Sell, or Hold in 2026? appeared first on The Motley Fool Canada.

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Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Amazon, Enbridge, Meta Platforms, and Pembina Pipeline. The Motley Fool has a disclosure policy.