For Canadians, savings accounts are a sensible place to keep emergency funds and money needed in the short term. They offer liquidity and capital preservation, even if the interest earned is modest.
According to Ratehub.ca, standard savings account rates can range from as little as 0.01% at traditional banks to roughly 1.50%-3.00% at digital and alternative financial institutions, with promotional rates sometimes reaching 4.75% for limited periods.
But what about money you don’t need for at least three to five years? For investors comfortable with market volatility, dividend stocks can potentially generate significantly more income while also offering the possibility of capital appreciation.
One TSX stock that’s worth digging deeper for income investors today is Enbridge (TSX: ENB).
Source: Getty Images
Enbridge offers a compelling income opportunity
Enbridge recently pulled back after announcing a $2.6 billion bought-deal equity offering at $66.85 per share. The shares are now trading roughly 17% below their highs earlier this year, creating a potentially more attractive entry point for long-term investors.
At $66.74 per share at writing, Enbridge’s annual dividend translates into a yield of approximately 5.8% — well above the rates available on most conventional savings accounts. More importantly, this isn’t simply a high-yield stock with an uncertain dividend.
Enbridge has increased its dividend for 30 consecutive years and has paid dividends for more than 70 years. Dividend growth has been relatively modest, averaging about 3% annually over the past five years, but the consistency of those payments could be a major attraction for income-focused investors.
The company is using this equity offering to help fund its $2.55 billion acquisition of Tallgrass Energy’s crude oil transportation business. The deal, among other assets, includes a 75% interest in the Pony Express Pipeline, which connects Rockies production to Cushing, Oklahoma, providing access to approximately 500,000 barrels per day of refining capacity.
A resilient business supporting the dividend
Enbridge’s appeal goes beyond its yield. Its infrastructure-based business model generates relatively stable cash flows and is less directly exposed to commodity-price swings than producers.
Its liquid pipelines connect to approximately 75% of North America’s refining complex, while its gas distribution and storage operations serve about 7.2 million customers.
Recent financial results reinforce that resilience. In the first half of the year, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 1.1% to $10.6 billion, while distributable cash flow (DCF) rose 1.8% to $6.8 billion. DCF per share increased 1.6% to $3.11.
Management expects 2026 DCF per share of $5.70-$6.10, implying a sustainable payout ratio of approximately 66%.
Is Enbridge a buy today?
Enbridge still carries risks. Rising interest rates, higher financing costs, execution risks from acquisitions, and regulatory or energy-market changes could affect returns. The recent equity offering also creates dilution for existing shareholders.
Nevertheless, the combination of a roughly 5.8% yield, a long track record of dividend growth, resilient cash flow, and approximately $20 billion of potential growth opportunities through 2030 makes the stock worth considering for long-term income investors.
The bottom line
Savings accounts are useful for short-term cash, but investors with longer time horizons may find better income opportunities in quality dividend stocks. Enbridge’s current yield is substantially higher than the typical savings account rate, while its durable infrastructure assets and long dividend record provide a compelling foundation for potentially attractive total returns.
For Canadians, savings accounts are a sensible place to keep emergency funds and money needed in the short term. They offer liquidity and capital preservation, even if the interest earned is modest.
According to Ratehub.ca, standard savings account rates can range from as little as 0.01% at traditional banks to roughly 1.50%-3.00% at digital and alternative financial institutions, with promotional rates sometimes reaching 4.75% for limited periods.
But what about money you don’t need for at least three to five years? For investors comfortable with market volatility, dividend stocks can potentially generate significantly more income while also offering the possibility of capital appreciation.
One TSX stock that’s worth digging deeper for income investors today is Enbridge (TSX: ENB).
Source: Getty Images
Enbridge offers a compelling income opportunity
Enbridge recently pulled back after announcing a $2.6 billion bought-deal equity offering at $66.85 per share. The shares are now trading roughly 17% below their highs earlier this year, creating a potentially more attractive entry point for long-term investors.
At $66.74 per share at writing, Enbridge’s annual dividend translates into a yield of approximately 5.8% — well above the rates available on most conventional savings accounts. More importantly, this isn’t simply a high-yield stock with an uncertain dividend.
Enbridge has increased its dividend for 30 consecutive years and has paid dividends for more than 70 years. Dividend growth has been relatively modest, averaging about 3% annually over the past five years, but the consistency of those payments could be a major attraction for income-focused investors.
The company is using this equity offering to help fund its $2.55 billion acquisition of Tallgrass Energy’s crude oil transportation business. The deal, among other assets, includes a 75% interest in the Pony Express Pipeline, which connects Rockies production to Cushing, Oklahoma, providing access to approximately 500,000 barrels per day of refining capacity.
A resilient business supporting the dividend
Enbridge’s appeal goes beyond its yield. Its infrastructure-based business model generates relatively stable cash flows and is less directly exposed to commodity-price swings than producers.
Its liquid pipelines connect to approximately 75% of North America’s refining complex, while its gas distribution and storage operations serve about 7.2 million customers.
Recent financial results reinforce that resilience. In the first half of the year, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 1.1% to $10.6 billion, while distributable cash flow (DCF) rose 1.8% to $6.8 billion. DCF per share increased 1.6% to $3.11.
Management expects 2026 DCF per share of $5.70-$6.10, implying a sustainable payout ratio of approximately 66%.
Is Enbridge a buy today?
Enbridge still carries risks. Rising interest rates, higher financing costs, execution risks from acquisitions, and regulatory or energy-market changes could affect returns. The recent equity offering also creates dilution for existing shareholders.
Nevertheless, the combination of a roughly 5.8% yield, a long track record of dividend growth, resilient cash flow, and approximately $20 billion of potential growth opportunities through 2030 makes the stock worth considering for long-term income investors.
The bottom line
Savings accounts are useful for short-term cash, but investors with longer time horizons may find better income opportunities in quality dividend stocks. Enbridge’s current yield is substantially higher than the typical savings account rate, while its durable infrastructure assets and long dividend record provide a compelling foundation for potentially attractive total returns.
