Enbridge Inc. (TSE:ENB) Ex-Dividend Date: Be Aware Before Buying for Dividend

Enbridge Inc. is set to pay a dividend of CA$0.9425 per share on September 1. However, investors should be cautious as the dividend is unsustainable, with the company paying out 130% of its profit and 174% of its free cash flow last year. The dividend is not well-covered by either earnings or cash flow, making it at risk over the long term.

Enbridge Inc. (ENB) is set to pay a dividend of CA$0.9425 per share on September 1, 2025, marking a significant milestone in the company's dividend history. However, investors should exercise caution, as the dividend is unsustainable. Enbridge paid out 130% of its profit and 174% of its free cash flow in 2024, indicating that the dividend is not well-covered by either earnings or cash flow [1].

Enbridge's dividend yield of 5.89% as of August 2025 is one of the highest in its 70-year history, attracting income-focused investors. Over the past 30 years, the company has delivered a 9% compound annual growth rate (CAGR) in dividends, with a payout ratio consistently pegged at 60-70% of Distributable Cash Flow (DCF) [1]. However, the current dividend payout ratio is unsustainable, as it exceeds the company's earnings and cash flow capabilities.

The company's strategic initiatives, such as the 600 MW Clear Fork Solar facility in Texas and the North Aitken Creek gas storage expansion in British Columbia, are commendable. These projects align with Enbridge's diversification strategy, which now spans liquids pipelines, gas transmission, gas distribution, and renewable power generation [1]. Additionally, Enbridge's acquisition of three U.S. utilities in 2024 has created the largest natural gas utility platform in North America, positioning the company to capitalize on the role of natural gas as a bridge fuel in the energy transition.

Enbridge's risk management framework is robust, with the company integrating climate scenarios from the International Energy Agency (IEA) to stress-test its assets. The company has reduced emissions intensity by 10% since 2018, demonstrating its proactive stance on climate risk mitigation [1]. However, the dividend payout ratio remains a significant concern, as it is not supported by the company's financial health.

Enbridge's financials remain robust, with a Distributable Cash Flow (DCF) of $2.9 billion in Q2 2025 and a Debt-to-EBITDA ratio of 4.7x, well within its target range. The company's $50 billion longer-term opportunity set ensures a pipeline of growth, with DCF per share projected to stay between $5.50 and $5.90 in 2025 [1]. However, the high dividend payout ratio raises questions about the company's long-term sustainability.

Investors should remain mindful of potential headwinds, such as a rapid shift to renewables or regulatory overreach, which could pressure Enbridge's traditional assets. While the company's diversified portfolio and secured growth projects mitigate these risks, the unsustainable dividend payout ratio is a significant concern.

References:
[1] https://www.ainvest.com/news/enbridge-buy-long-term-dividend-investors-2508/
[2] https://finance.yahoo.com/news/enbridge-provides-notice-series-15-200500466.html