Enbridge dividend: cash coverage and yield
Enbridge pays C$3.88 per share for 2026. Enbridge's dividend is covered by DCF, but total cash after capital spending does not cover it.
How much does Enbridge pay per share?
Enbridge’s preferred dividend measure looks comfortable because DCF deducts maintenance spending, not the entire growth program. The company raised its annualized common dividend to C$3.88 per share for 2026. Against 2025 DCF of C$5.71 per share, that used about 68%, within its target range.
The dividend grows at 3% annually in the base case, from C$4.00 in October 2027 to C$4.24 in October 2029. The bear case holds it at C$3.88 because leverage and investment take priority; the bull case reaches C$4.45 because project cash flow grows faster. The base follows the stated increase and the company’s record of annual increases, while the bear reflects the funding pressure.
| Year to Dec 2025 | Year to Dec 2024 | Year to Dec 2023 | Year to Dec 2022 | Year to Dec 2021 | |
|---|---|---|---|---|---|
| Net margin (calculated) | 11.5% | 10.2% | 14.2% | 5.6% | 13.1% |
| EPS, diluted | 3.22 | 2.34 | 2.84 | 1.28 | 2.87 |
| Dividend per share | 3.77 | 3.66 | 3.55 | 3.44 | 3.34 |
Is Enbridge's dividend covered by its cash?
The stricter measure tells a different story. In 2025, real free cash flow after total capital spending, leases and stock pay was C$2.766 billion, while dividends were C$8.220 billion. That left a C$5.454 billion gap. Borrowing can fill it, but creates interest costs; issuing shares can fill it, but dilutes owners.
| Year to Dec 2025 | Year to Dec 2024 | Year to Dec 2023 | Year to Dec 2022 | Year to Dec 2021 | |
|---|---|---|---|---|---|
| Real free cash flow (after stock pay) (calculated) | 2,766 | 5,471 | 9,154 | ||
| Dividends paid | 8,220 | 7,875 | 7,276 | 6,968 | 6,766 |
| Shares bought back | 0 | 0 | 125 | 151 | 0 |
| Acquisitions | 0 | 13,472 | 954 | 828 | 3,785 |
| Returned to shareholders, share of real free cash flow (calculated) | 297.2% | 143.9% | 80.8% |
Could Enbridge's dividend change?
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| EBITDA | 21,269 (20,039 / 21,892) | 22,332 (20,183 / 23,258) | 23,464 (20,739 / 24,653) |
| Dividends per share | 4.00 (3.88 / 4.04) | 4.12 (3.88 / 4.24) | 4.24 (3.88 / 4.45) |
| Net debt | 112,120 (114,320 / 109,120) | 116,720 (121,720 / 110,620) | 121,520 (128,020 / 111,620) |
What is Enbridge's dividend yield against its price?
The yield is therefore supported by cash, but the next question is how much confidence the market has already placed on that cash.