Enbridge: Buy, Sell, or Hold in 2026?

A surging share price can sometimes make a dependable dividend stock harder to judge. That is exactly the situation many investors are facing with Enbridge (TSX:ENB) in 2026.

ENB stock has gained nearly 29% over the last year and now trades close to its 52-week high. While it still offers an attractive dividend yield of about 5%, its pipeline, utility, storage, and power businesses continue to generate steady cash flow.

However, the real challenge now is figuring out whether the stock’s strong rally has already priced in most of the positive news, leaving less room for further gains. That becomes an even more important question because Enbridge still carries some debt and posted softer adjusted earnings in the latest quarter.

In this article, let’s take a closer look at Enbridge stock’s recent performance, financials, risks, and fundamental outlook to decide whether Enbridge is a buy, sell, or hold in 2026.

Enbridge stock

In short, Enbridge is one of North America’s largest energy infrastructure companies. It operates crude oil and natural gas pipelines, regulated gas utilities, natural gas storage assets, and renewable power projects across Canada, the U.S., and Europe.

After climbing 29% over the last year and 18% year-to-date, ENB stock currently trades at $77.33 per share with a market cap of about $168.9 billion. It also offers an annualized dividend yield of about 5%, with payouts every quarter.

Its recent rally reflects investor confidence in Enbridge’s resilient business model, dependable cash flows, and ability to keep expanding its energy infrastructure network while rewarding shareholders with reliable dividends.

Recent financials present a mixed picture

In the first quarter of 2026, Enbridge’s revenue jumped by about 21% year-over-year (YoY) to $22.4 billion. However, its adjusted earnings slipped 5% YoY to $2.1 billion, while adjusted earnings declined to $0.98 from $1.03 per share a year earlier.

At the same time, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) remained largely unchanged at $5.8 billion. The company saw weaker contributions from its liquids pipelines and renewable power businesses, partly because the prior-year quarter included a litigation settlement and investment tax credit benefits that did not repeat this year.

On the brighter side, stronger performance from its gas transmission, gas distribution, and storage segments helped offset much of that weakness. Higher utility rates, stronger natural gas storage revenue, and favourable contracting supported these businesses during the quarter.

Another encouraging sign about Enbridge continues to be its strong distributable cash flow, which increased to $3.9 billion in the latest quarter from $3.8 billion a year ago. That is an important metric because it helps support Enbridge’s dividend payments.

Could Enbridge stock keep rallying from here?

Enbridge’s long-term investment appeal now hinges on whether it could continue turning its large project pipeline into steady earnings growth.

The company expanded its secured capital backlog to about $40 billion in the latest quarter. New projects include the Cone wind project in Texas, the Tres Palacios natural gas storage expansion, the Vector Pipeline expansion, and additional storage capacity at Ontario’s Dawn Hub. These investments are aimed at serving growing demand for natural gas, power generation, liquefied natural gas (LNG) exports, and energy storage across North America.

That said, investors should continue watching its balance sheet as Enbridge ended the quarter with a debt-to-EBITDA ratio of 5 times, which sits at the upper end of management’s target range.

Should you buy, sell, or hold ENB stock

Considering all these factors, Enbridge still looks like a solid long-term business backed by stable cash flows, an attractive dividend, and a large portfolio of growth projects. However, after a nearly 29% rally over the last year, much of that optimism may already be reflected in the share price.

For existing shareholders, Enbridge appears to be a strong hold in 2026. While investors looking to start a new position may still consider buying gradually for long-term income, waiting for a better entry point could increase the upside potential.

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

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More reading

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• How $20,000 Across 4 TSX Stocks Can Deliver $1,000 in Passive Income
• How to Use a TFSA to Generate an Average of $381.50 in Monthly Tax-Free Income
• Suncor Stock vs. Enbridge Stock: Which Dividend Energy Stock Looks Better Now?

Fool contributor Jitendra Parashar has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.