Enbridge (ENB 0.05%) is as consistent as they come. The Canadian energy infrastructure giant has paid dividends for nearly 70 years. It currently offers investors a dividend yield approaching 6%. That's significantly higher than the average stock, considering the S&P 500's dividend yield is near its lowest level in over two decades at around 1.2%.

The pipeline and utility operator is also a very consistent grower. Next year will mark its 30th consecutive year of increasing its dividend payment, supported by its steadily rising earnings. Here's a look at the growth it sees ahead in 2025 and beyond.

Acquisition-fueled growth in 2025

Enbridge recently released its 2025 financial guidance. The company expects its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be in the range of 19.4 billion Canadian dollars and CA$20 billion ($13.8 billion and $14.2 billion) next year. That's 9% higher than the current midpoint of its 2024 financial guidance and 17% above its original forecast range. Fueling its accelerating growth rate is "a full year of contributions from our U.S. gas utilities acquisitions, the roughly $5 billion ($3.6 billion) of secured projects we're on track to place into service in 2024 and continued strong expected utilization of our assets," noted CEO Greg Ebel in the guidance press release.

The company has spent much of the past year working to complete the acquisition of three U.S. natural gas utilities from Dominion. It closed the transformational $14 billion transaction in phases over the past year, with the final acquisition wrapping up in October. Enbridge will now get about 22% of its EBITDA from stable gas-distribution businesses, up from 12% before the deal. The company also made about CA$1 billion ($710 million) of additional accretive acquisitions last year.

Enbridge expects to grow its distributable cash flow (DCF) at a more modest pace next year. It anticipates DCF to be in the range of CA$5.50 to CA$5.90 per share ($3.91 to $4.20), up from CA$5.40 to CA$5.80 per share ($3.84 to $4.13) this year. That's around a 2% increase at the midpoint due to some modest tax legislation headwinds and a higher share count from issuing equity to fund its gas utility acquisitions. That cash flow per share growth supports Enbridge's plan to increase its dividend by 3% next year while maintaining a dividend payout ratio within its 60% to 70% target range.

More growth is coming down the pipeline

Enbridge is in a strong position to continue growing well beyond 2025. The company added CA$7 billion ($5 billion) of additional capital projects to its backlog last year, more than replacing the CA$5 billion ($3.6 billion) of projects that have entered commercial service over the past year. It had CA$27 billion ($19.2 billion) of capital projects in its backlog at the end of the third quarter. Recent additions include Fox Squirrel Solar phase three, Sequoia Solar, and the Canyon offshore pipeline projects. Enbridge now has expansion projects on track to come online through 2029.

Those projects give the company lots of visibility into its ability to grow its adjusted EBITDA and DCF per share. The company reaffirmed its expectations that it will grow its EBITDA at a 7% to 9% annual rate through 2026. Meanwhile, it continues to anticipate around 3% annual DCF per-share growth during that period.

Its longer-term growth prospects are becoming increasingly more visible as it adds additional expansion projects to its backlog. Enbridge believes it can grow its EBITDA and DCF per share by around a 5% annual rate post-2026. It can complement its secured project backlog by adding additional capital projects and making bolt-on acquisitions to achieve that annual growth rate. Enbridge has ample excess financial capacity to fund that level of growth.

The total package

Enbridge offers investors a very secure, high-yielding dividend. On top of that, it expects to grow its cash flow at a low-to-mid single-digit annual rate for the next several years, which should support continued dividend growth. Add the dividend income to its earnings growth, and Enbridge should have the fuel to produce total annual returns of around 10%. That's an attractive value proposition from such a low-risk and consistent company.