Better Stock for Passive Income: Enbridge with Its 70+ Years of Payouts or Energy Transfer with Its 6.6% Yield?
2026-07-23 23:05
•Jack Delaney •The Motley Fool
•••• •••••• Axe Capital view
Choose Reliability Over Yield in Energy Infrastructure Dividends
Enbridge’s long dividend track record outshines Energy Transfer’s higher yield for dependable income.
When chasing dividends, a higher yield can be tempting, but reliability matters more for steady income streams. Enbridge stands out with over 70 years of uninterrupted payouts and 31 years of dividend increases. This kind of consistency builds trust, especially in volatile energy markets. Energy Transfer offers a juicy 6.6% dividend yield, but its dividend history is patchier. Plus, recent setbacks—like the New Mexico pipeline rejection affecting Energy Transfer’s natural gas supply for Oracle’s data center—introduce uncertainty. Local investors should think about currency risks via the USD/ZAR; a weakening rand can eat into any foreign dividend gains. For South Africans eyeing energy dividends, Enbridge’s exposure to stable infrastructure and data center growth with customers like Meta makes it a safer anchor. If the pipeline issues resolve quickly or energy prices soar, Energy Transfer could catch up, but that’s a riskier bet. this is just my opinion and not financial advice
I would buy Enbridge for steady dividend income and trim any exposure to Energy Transfer until pipeline clarity improves. Consider hedging USD/ZAR risks to protect foreign dividend payments.
- ENB
- ET
- USD/ZAR
- New Mexico pipeline rejection delays Energy Transfer's projects
- Rand depreciation reducing foreign dividend value
7/10
Enbridge and Energy Transfer both offer dividend yields above 5%, but the article recommends Enbridge for passive income investors despite Energy Transfer's higher 6.6% yield. Enbridge's 70+ years of consistent dividend payments and 31 consecutive years of dividend increases make it more reliable for long-term passive income, even though it yields 5%.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Jack Delaney
Categories: Rates, Equities, Capital Returns, Commodities
Tickers: ENB, ET, ETPI, META, ORCL, ORCLPD
Sentiment: Positive - Recommended as the better choice for passive income due to 70+ years of dividend payment history, 31 consecutive years of dividend increases, and strong positioning in data center growth opportunities with Meta and other customers. While offering a higher dividend yield of 6.6%, it lacks the long-term dividend history and consistency of Enbridge. Recent setback with New Mexico pipeline rejection for Oracle's data center project adds some concern, though Oracle states the project remains on schedule.
Keywords: passive income, dividend stocks, energy infrastructure, pipeline companies, dividend yield, data centers, natural gas
Insights:
- ENB: Positive: Recommended as the better choice for passive income due to 70+ years of dividend payment history, 31 consecutive years of dividend increases, and strong positioning in data center growth opportunities with Meta and other customers.
- ET: Neutral: While offering a higher dividend yield of 6.6%, it lacks the long-term dividend history and consistency of Enbridge. Recent setback with New Mexico pipeline rejection for Oracle's data center project adds some concern, though Oracle states the project remains on schedule.
- ETPI: Neutral: While offering a higher dividend yield of 6.6%, it lacks the long-term dividend history and consistency of Enbridge. Recent setback with New Mexico pipeline rejection for Oracle's data center project adds some concern, though Oracle states the project remains on schedule.