Enbridge vs. Energy Transfer: A Dividend Comparison

Enbridge and Energy Transfer compete in the midstream sector. Enbridge's long-term reliability and cleaner energy shift position it as a preferable dividend stock over Energy Transfer's higher yield but past volatility.

Date: 07-03-2025

AI Rating: 6

Dividend Reliability and Growth
Enbridge presents a strong dividend proposition due to its consistent annual increases over the past 30 years, which adds credibility to its stability as a dividend stock. This track record makes Enbridge significantly more appealing to conservative income investors.

Energy Transfer, while offering a higher yield of 6.7% compared to Enbridge’s 6.2%, has a problematic history due to a past dividend cut during the pandemic. Although Energy Transfer is currently growing its dividend again, the previous instability could still weigh on investor confidence. In terms of dividend reliability, Enbridge has a clear upper hand.

Overall Investment Outlook
When considering investments, an investor's choice may hinge between the immediate appeal of Energy Transfer’s higher yield versus the long-term reliability and growth potential of Enbridge. The choice between the two may ultimately depend on an investor's risk tolerance and preference for yield versus reliability. Enbridge's commitment to transitioning towards cleaner energy and its ability to maintain consistent dividends positions it as a more attractive option for long-term investors, despite a lower yield.

Stocks: ENB ET