What Has Enbridge (ENB) Stock Done For Investors?

• Enbridge has invested heavily in organic capital projects to expand its operations over the past several years.

• It has also made several acquisitions, led by its transformational gas utility transaction with Dominion.

• These investments have given it the fuel to continue increasing its high-yielding dividend.

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Enbridge (NYSE: ENB) is one of North America’s largest energy infrastructure companies. It transports about 30% of the crude oil produced on the continent and almost 20% of the natural gas consumed in the U.S. The Canadian company also operates the largest natural gas utility by volume and is a leading investor in renewable energy.

Here’s a look at what this leading pipeline and utility stock has done for investors over the past five years.

The following table illustrates Enbridge’s stock price and total return compared to the S&P 500 over the past one-, three-, and five-year periods:

Data source: Ycharts.

Other than the past year, Enbridge’s stock price has underperformed the S&P 500 over the last three- and five-year periods. However, the company’s total return is much higher when adding in its high-yielding dividend (5.8% current yield). That lucrative dividend income has really added up over the past five years, enabling Enbridge to outperform the broader market index.

Enbridge has spent the past several years expanding and diversifying its North American energy infrastructure platform. It has invested heavily in organic capital projects across its four core franchises (liquids pipelines, gas transmission, gas distribution, and power). It has expanded several oil pipelines, built new natural gas pipelines, invested in gas utility capital projects, and developed several renewable energy projects, including offshore wind energy projects in Europe.

The company has also made several acquisitions over the past few years. The biggest was its transformational deal to buy three U.S. natural gas utilities from Dominion for $14 billion in 2023. That transaction significantly expanded its gas distribution platform, further shifting its earnings mix away from liquids pipelines:

Data source: Enbridge.