To find high-quality dividend stocks that will give you the greatest returns, you have to do more than sift through stocks with high yields and low payout ratios. That doesn’t tell you the whole story of a stock, let alone whether its payments are safe and sustainable. Ratios can change over time, and it’s important to understand a company’s business and financial health to judge whether it can truly be considered a reliable income-producing investment in the long term.
One stock that might be easily overlooked is ambridge (NYSE: ENB). This Canada-based oil and gas stock typically has a payout ratio above 100%. While this may seem concerning, its stable operations actually make it a good choice for long-term dividend investors. That’s why this can be a solid pillar on which to build your portfolio.
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Enbridge is a leading infrastructure company in the oil and natural gas industry, with pipelines connecting supply basins throughout North America. Its business model is stable and based on long-term contracts, making Enbridge a fairly stable investment company.
The company had another solid year in 2025, with adjusted earnings rising 9% to C$6.6 billion. Enbridge also has an impressive track record of meeting or exceeding its financial guidance for 20 consecutive years.
Dividend investors might mistakenly think its dividend is risky because the company has a payout ratio of over 100%, but Enbridge measures its dividend based on distributable cash flow (DCF), which grew 4% last year, and it expects it to continue growing. As long as discounted cash flow remains strong, like Enbridge, the dividend isn’t something investors need to worry about.
What makes Enbridge particularly attractive as a dividend stock is that as its business grows, so does its dividend. Enbridge has increased its dividend payments for 31 consecutive years, providing investors with ample incentive to hold the stocks in their portfolios for the long term.
Currently, the stock yields 5.3%, more than four times the common stock’s yield. S&P 500 Index The average is 1.2%. With a strong financial position, a growing dividend, and a fairly safe payout backed by a high yield, Enbridge is one of the best income stocks you can add to your portfolio today. The stock has gained 49% over the past five years, and including dividends, the total return is up about 105%.
