5.6% Dividends. 31 Straight Hikes. A 16% “Discount” (Thank the Trade War)

Brett Owens, Chief Investment Strategist
Updated: September 15, 2026

One of our favorite pipeline plays—Enbridge (ENB)—has taken a tumble. It’s set up a sweet buying opportunity.

We can thank rising rates (with an “assist” from overdone trade war fears!) for this opening.

Here’s the state of play with this one, which I’ve nicknamed the “natty” king because, despite its Canadian domicile, it ships 20% of the natural gas consumed in the US.

• The stock yields a gaudy 5.6%.
• Enbridge is a “toll booth” on North American energy consumption, collecting fixed rates for the use of its pipelines and storage facilities, no matter what oil and gas prices do.
• The stock has returned 56% for us since we bought it in March 2023.
• Its payout has jumped 77% in the last decade (more on that below).

Right now, the natty king is showing an attractive blend of strength and value. Even with that 56% total return, the stock is still down—off 16% on a price basis from its May highs. That’s a big part of our opportunity here:

The “Natty” King’s (Temporary) Fall

Beyond rates, some investors see the company as a potential trade-war victim. That’s in part because Enbridge is also a major oil shipper: Its 8,600-mile Mainline system, an important part of its operations, ships Canadian crude to refineries in the US Midwest.

But these folks are missing the point. For one, to date, oil and gas have been exempted from the trade spat.

That’s by design: The administration doesn’t want to raise fuel costs, and the Canadian side doesn’t want to antagonize its resource-producing western provinces. Plus, those Midwest refineries are set up to process Canadian “heavy” crude, and that can’t be easily changed.

Yes, Venezuela produces a crude similar to Alberta’s. But as we discussed last week, the country’s battered oil infrastructure needs many years, and billions of dollars, of investment.

As I write this, Enbridge’s project backlog has grown to $41 billion Canadian . And it’s deploying $10 billion Canadian  in growth capital this year alone. Current projects stretch into the 2030s.

It’s already making news on this front: Last Thursday, Enbridge announced a US$2.55-billion deal to buy a 75% stake in the 1,050-mile, 460,000-barrel-per-day Pony Express pipeline, which ships crude from the US Rockies to the key storage hub at Cushing, Oklahoma.

The deal also covers 51% of the Powder River Gateway system, which can ship up to 240,000 barrels a day, as well as other storage and marketing assets.

It’s a cash deal, but the company will come up with some of the purchase price through a C$2.6-billion share offering. The resulting dilution prompted a selloff last week. We’re fine with that, as Enbridge expects the deal to add to its cash flow right away, after it expects to close the deal later this year (pending regulator sign-off, of course).

Finally, Enbridge said CEO Greg Ebel will retire December 31. Michele Harradence, who’s been with the company since 2014 and is now president of Enbridge’s gas-distribution and storage operation, will take over. Her familiarity with the business (and the fact that Ebel will advise her until next May) tees up a smooth transition.

Steady Payout Growth, With a Potential Currency “Kicker”

Now let’s talk dividends. Earlier this year, the company treated us to a payout hike—its 31st consecutive increase.

And that payout is well-covered, with Enbridge kicking out $3.88 (Canadian) in annualized dividends and guiding to$5.70 to $6.10 in distributable cash flow per share in 2026. The midpoint of that estimate translates to 66% of DCF going out as dividends—very reasonable for a “toll booth” like ENB.

Take a look at this payout picture—I’m sure you’ll see something interesting (beyond the rarity of a 5.6%-yielding stock hiking payouts 77% in 10 years):

Enbridge’s Payout Surfs FX Rates 

As a Canadian company, Enbridge issues dividends in “loonies” (shorthand for the country’s loon-emblazoned one-dollar coin). That’s why you don’t see the clean “dividend staircase” we’re used to in our stocks.

As a result, the US dollar’s strength versus the loonie weighs on our payouts. But that could be a plus in the long run. Here’s why: In the US, the Fed’s target range is 3.5% to 3.75%, compared to the Bank of Canada’s 2.25% policy rate. The gap between the two central banks’ rates is a big reason for the greenback’s strength versus its Canadian cousin.

The Iran situation is a driver of inflation in both countries. But it will end at some point. When it does, the Fed will have more room to cut than the Bank of Canada, by virtue of its higher “starting point.”

As rates fall, they should put upward pressure on shares of “bond proxy” utilities and pipelines. They could also weigh on the greenback, potentially boosting our dividends when they’re converted to US dollars.

To be sure, the trade war could push rate cuts down the road, but we’re fine with that: While we wait, we’re locking in Enbridge’s 5.6% payout.

(One thing to note before I wrap up here: Since Enbridge is a Canadian company, US investors face different tax treatment in the form of 15% withholding on dividends, though an offsetting tax credit may be available. This explainer lays out the details.)

Where does all this leave the natty king? While the rest of the world gets riled up by the headlines, Enbridge hardly notices. It simply goes on quietly collecting tolls on the rising tide of oil and gas flowing through its pipes.

Enbridge Pays Us 5.6%.

As I just said, Enbridge is a top play on overdone fears around trade and rates. The stock’s payout growth lets us build on the 5.6% dividend on a buy made now.

In short, the Canadian “natty king” is one of those stocks you can buy now and lock away forever.

Remember the SNOWBALL does not trade The Target Price but buys shares that pay a dividend then uses those dividends to buy more shares.

Thursday 17 September

BlackRock World Mining Trust PLC ex-dividend date
Fidelity European Trust PLC ex-dividend date
Regional REIT Ltd ex-dividend date
Unite Group PLC ex-dividend date

Several dividends to be received to be re-invested in shares that pay a dividend to earn more dividends to re-invest.

Remember if you trade, you are buying for the yield and not the target price as that is unlikely to be achieved.

Story by Steven Smith

A young Asian woman and her daughter are happily saving coins in a pink piggy bank on a table at home.© simon2579 via Getty Images

Parents could potentially amass a fund of approximately £65,000 for their child through one straightforward early action, an expert has revealed.

While many believe that accumulating wealth involves selecting winning stocks, forecasting market trends or making a few shrewd financial choices, one specialist suggests the genuine secret is far more mundane – it’s simply time. Paul Denley, CEO at London-based Oakham Wealth Management, highlighted that the strength of compound growth remains one of the most undervalued forces in personal finance.

He explained: “As (entrepreneur) Naval Ravikant said, ‘all the returns in life, whether in wealth, relationships or knowledge, come from compound interest’. That observation applies remarkably well to investing because long-term financial success is often not about finding the next hot stock. It is about allowing compounding to work quietly over time.”

Compounding refers to the mechanism whereby investment profits themselves generate additional returns. Benjamin Franklin famously characterised it as: “Money makes money. And the money that money makes, makes money.”

Mr Denley emphasised that this straightforward concept underpins the effectiveness of long-term investing.

He elaborated: “The mathematics are extremely powerful. Returns generate further returns, creating a snowball effect that becomes increasingly significant as time passes.

“The challenge is that compounding is almost invisible in its early years. Progress can feel slow and the real benefits often only become obvious much later.”

That’s precisely why beginning early can yield such remarkable results. A parent putting aside £150 monthly into a Junior ISA from their child’s birth could accumulate approximately £65,000 by the time they reach 18, based on an average yearly return of 7%. When adjusted for inflation, that sum would equate to roughly £50,000 in current terms.

Mr Denley explained: “The exact contribution matters less than the principle. Whether someone invests more or less than £150 a month, the important point is that the earlier investing begins, the longer compounding has to do the heavy lifting.”

This same logic extends to pension savings. Many people concentrate almost exclusively on contribution amounts, when frequently the more crucial factor is timing. An additional decade of compound growth can sometimes outweigh attempting to make substantially larger payments later on.

Mr Denley said: “People often think they can make up for lost time later, but time itself is the most valuable ingredient. Once those early years have gone, you cannot get them back.”

Warren Buffett, who amassed his fortune across more than 70 years, famously attributed his wealth to “a combination of living in America, some lucky genes, and compound interest”. According to Mr Denley, the key takeaway isn’t that compounding generates rapid wealth, but rather that it rewards patience, discipline and consistency.

He concluded: “Compounding is not exciting day to day. It does not feel dramatic. But, over long periods, it can be transformational.”

In an investment landscape where short-term predictions, market chatter and daily news cycles reign supreme, Mr Denley reckons countless investors are missing the most straightforward advantage at their disposal.

He explained: “The greatest edge most people have is not prediction. It is time. Start early, stay invested and allow compounding to do the heavy lifting.”

3 High-Yield Dividend Stocks Worth Loading Up On This Month

With yields as high as 5.6%, these three dividend stocks have proven to be reliable income producers through good times and bad.

By Reuben Gregg Brewer– Sep 12, 2026

Key Points

• Enterprise Products Partners has 28 annual distribution increases and a 5.6% yield.
• Realty Income has 31 annual dividend increases and a 5.3% yield.
• PepsiCo is a Dividend King and offers a 4.3% yield.

The stock market is trading near all-time highs. JPMorgan Chase

CEO Jamie Dimon is warning Wall Street about tectonic plates beneath the financial surface that could “cause meaningful disruptions when they shift or collide.” Some of the risks include geopolitical conflict, inflation, and elevated debt levels. If you are looking for high-yield dividend stocks in this environment, you need to focus on resilient businesses.

Here’s why Enterprise Products Partners (EPD-1.09%), Realty Income (O-0.12%), and PepsiCo (PEP-0.24%) should be on your short list in September. And, the best part, is that the lowest yield on this list is roughly 4x higher than the miserly 1% yield on offer from the S&P 500 index (^GSPC+0.86%).

Image source: Getty Images.

These dividends have lived through hard times

Of the high-yield investments on this list, Enterprise Products Partners has the shorted streak of annual distribution increases at 28 years. However, that’s about as long as the midstream master limited partnership (MLP) has been publicly traded. Real estate investment trust (REIT) Realty Income’s streak is 31 years. And PepsiCo, one of the world’s largest consumer staples businesses, has an incredible 53-year track record, making it a Dividend King.

As of this writing, it is 2026, so each of those streaks started before the dot-com crash and survived it. They continued through the Great Recession, when there were legitimate concerns that the global financial system would collapse. And they got through the coronavirus pandemic, when governments around the world effectively shuttered their economies. If you need a dividend you can count on, these three high-yielders have proven they can keep paying through extreme adversity.

Enterprise lets you sidestep commodity risk in the energy sector

North American midstream giant Enterprise Products Partners has the highest yield at 5.6%. The MLP operates in the highly volatile energy sector, but it is a very boring business that throws off reliable cash flows. That’s because its collection of energy infrastructure assets, such as pipelines, helps to move oil and natural gas around the world. It charges fees for the use of its assets, so the prices of oil and natural gas aren’t the driving force of its business; demand for these vital fuels is.

Realty Income has a diversified global footprint and a net lease focus

Realty Income’s 5.3% yield is backed by a massive portfolio of single-tenant net lease properties. A net lease requires the tenant to pay most property-level operating costs, thereby reducing Realty Income’s expenses and risk. Meanwhile, the portfolio includes over 15,500 assets spread across North America and Europe. While roughly 80% of its properties are retail, that is the most liquid net lease asset class. Its industrial exposure and other properties, such as casinos and data centers, add meaningfully to diversification. And the REIT has been expanding its reach into debt financing and institutional asset management, complementary areas that add even more diversification.

NASDAQ: PEP

PepsiCo

PepsiCo sells low-cost products that people buy regularly

PepsiCo has the most impressive streak by far, as its 53 years of increases puts it on the Dividend King list. The current 4.3% yield is historically high, as the consumer staples giant faces headwinds. However, PepsiCo has successfully navigated headwinds many times over the past 53 years. It is highly likely to do so again. One key feature here is the company’s diversified business, with industry-leading positions in beverages, snacks, and packaged food products.

Consider adding all three dividend stocks in September

Of the three high-yield dividend stocks here, PepsiCo is probably the riskiest choice. But that speaks more to the low-risk nature of Enterprise and Realty Income than to the risks posed by PepsiCo. With well-above market yields and incredible dividend histories, this trio could enhance your income stream while, at the same time, helping you sleep at night. Now, before the tectonic plates Jamie Dimon warned about crash together, is the time to add reliable dividend stocks like these to your portfolio.