This Top Canadian Dividend Stock Is a Safe Buy and Yields Nearly 6%

If you’re looking for a top dividend stock to build your portfolio around, it’s hard to go with pipeline company Enbridge (TSX:ENB)(NYSE:ENB). Its dividend yields 5.9%, which can provide you with a lot of recurring income. If you were to invest approximately $17,000 into the oil and gas stock today, that could be enough to generate over $1,000 in dividends over the course of a full year.

And what’s even better is that Enbridge is also a dividend growth stock. It has been increasing its dividend for 30 years. Over that stretch, it has increased its dividend by an average of 9% per year. However, the most recent hike it announced, in December 2024, was a bit more modest at just 3%. There are more rate hikes likely to come as the company says that “consistent dividend growth is an important component of our investor value proposition and underpins our dividend aristocrat status.”

Enbridge has consistently hit its financial guidance for years and is one of the more stable Canadian businesses that you can invest in. It expects single-digit growth in its distributable cash flow (which it uses to assess how much room it has for dividend increases) by around 3% up until 2026.

The stock has averaged a beta of less than 0.9, indicating that this is a less volatile investment than the overall market. This year, its shares are up by 6% and over a five-year period they have risen by more than 40%. Enbridge can be a no-brainer buy to put in your portfolio for the long haul.