Should Investors Dump Enbridge Stock and Buy This Dividend Champ Instead? 

Enbridge (TSX:ENB) is a stock most Canadians have owned for a long time. It is, after all, a dividend darling with 30 consecutive years of dividend growth and more than 60 years of dividend-paying history. It is the reliable retirement partner of many retirees today because it has grown its dividend at 9% compounded annual growth rate (CAGR). Does it still have the same growth and return that made it a retiree’s favourite?

Should investors dump Enbridge stock?

Enbridge is currently transitioning its portfolio from oil pipelines to natural gas pipelines. The gas transmission, storage, and distribution now make up more than 50% of its revenue. However, this transition has accelerated capital expenditure and increased debt. The diversion of cash has slowed its dividend-growth rate from 9.8% in 2020 to 3% since then. The 3% growth will continue till 2026, and from 2027 onwards, 5% dividend growth could be in the cards.

The current scenario of high debt and capex has made Enbridge less appealing as a dividend stock for the medium term. However, its long-term appeal remains intact. If you have accumulated Enbridge stock over the last few years at a share price below $50, you could consider holding the stock for stable passive income. The company can continue paying dividends for years to come and even grow them by mid-single digits.

However, if you are looking to make fresh investments, there are better options than Enbridge for higher growth in the medium term.

Consider buying this dividend champ instead

The unique point of Enbridge stock was its high dividend-growth rate and long dividend history. Since the first one has slowed, Canadian Natural Resources (TSX:CNQ) presents an attractive option in the medium term, provided the company maintains an 8-9% dividend-growth rate.

Unlike Enbridge, which has a longer turnaround time to realize cash flows from pipeline projects, CNQ has a quicker turnaround time. It acquires oil sands reserves and starts producing oil. The higher production converts to more cash flow, which it uses to pay down debt. Higher production also leads to optimum utilization of refineries, reducing production costs. CNQ incorporates the dividend into its breakeven cost of mid-US$40/barrel.

Thus, higher oil prices increase cash flow and dividends. In the bust cycles, lower debt and share buybacks help increase dividend per share. In the last five years, Enbridge slowed its dividend-growth rate to 3%, while CNQ increased it to an average annual rate of 23.5%.

Taking a conservative approach, CNQ might keep its dividend-growth rate around 8-9% as oil prices normalize and its debt level increases to $17 billion, above its $12 to $15 billion range.

Which is a better buy in 2026: Enbridge or CNQ?

The best way to decide is to see the dividend outcome on a $10,000 investment. Although Enbridge has a higher dividend yield of 5.83% than Canadian Natural Resources’s 4.9%, the latter has a higher growth rate. A $10,000 investment today can buy 152 shares of Enbridge and 214 shares of CNQ. If Enbridge grows its dividend by 5% from 2027 onwards and CNQ by 9%, their dividends would be at par in 2028, and CNQ’s would exceed Enbridge’s in 2029.

YearEnbridge Dividend Per ShareDividend income on $10,000 InvestmentCNQ Dividend per ShareDividend income on $10,000 Investment2025$3.77$573.04$2.35$502.902026$3.88$590.23$2.56$548.162027$4.08$619.74$2.79$597.502028$4.28$650.73$3.04$651.272029$4.50$683.27$3.32$709.882030$4.72$717.43$3.62$773.77

However, CNQ must maintain the 9% dividend-growth rate for it to be more attractive than Enbridge.

Investor takeaway

In investing, the better stock is always dynamic as changing market conditions, management decisions, the company’s fundamentals, and share price keep moving.

The post Should Investors Dump Enbridge Stock and Buy This Dividend Champ Instead?  appeared first on The Motley Fool Canada.

Should you invest $1,000 in Enbridge Inc. right now?

Before you buy stock in Enbridge Inc., consider this:

The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 15 best stocks for investors to buy now… and Enbridge Inc. wasn’t one of them. The 15 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,105.89!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 95%* – a market-crushing outperformance compared to 72%* for the S&P/TSX Composite Index. Don’t miss out on our top 15 list, available when you join Stock Advisor Canada.

See the 15 Stocks #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of November 17th, 2025

More reading

• Canadian Investors: The Best $7,000 TFSA Approach
• 2025’s Top Canadian Dividend Stocks to Hold Into 2026
• The Best Canadian Stocks to Buy and Hold Forever in a TFSA
• My Top Picks: 4 Canadian Dividend Stocks You’ll Want in Your Portfolio
• Locking in Gains by Selling Gold Stocks? Here’s Where to Invest Next

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Enbridge. The Motley Fool has a disclosure policy.