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Canadian dividend giants Enbridge and Royal Bank outlined as long-term holdings
Summary
The article profiles Enbridge and Royal Bank of Canada, noting Enbridge’s higher dividend yield and recent dividend increase and Royal Bank’s diversified earnings, recent quarterly results, and capital position.
Content
The piece profiles two large Canadian dividend firms—Enbridge and Royal Bank of Canada—and explains why the author highlights them for long-horizon investors. It emphasizes Enbridge’s pipeline and utility operations with long contracts and regulated rates. It contrasts that with Royal Bank’s diversified banking businesses that generate recurring earnings. The article also notes recent quarterly results and dividend and capital details for each company.
Key details:
- Enbridge operates crude oil and liquids pipelines, gas transmission lines, gas distribution utilities, and a smaller renewable power segment.
- In the third quarter of 2025 Enbridge reported adjusted EPS of $0.46 and announced a 3% quarterly dividend increase to $0.97 (annualized $3.88) effective March 1, 2026, with a reported yield around 6%.
- Enbridge’s unit price moved about 1.5% over the last year, influenced by changes in bond yields and financing concerns.
- Royal Bank of Canada earns from personal banking, commercial lending, wealth management, insurance, and capital markets and recently saw shares move about 36% in the past year.
- In the fourth quarter of fiscal 2025 Royal Bank reported net income of $5.4 billion, diluted EPS of $3.76, and a CET1 ratio of 13.5%, with a cited dividend yield near 2.75%.
- The article notes key risks for the bank include a weaker Canadian consumer and higher provisions for credit losses if unemployment rises.
Summary:
Put together, the two companies are described as a pairing that balances contracted, regulated cash flow from infrastructure with diversified banking earnings that compound over time. The article highlights Enbridge’s dividend change effective March 1, 2026, and observes that further developments are undetermined at this time.
