Enbridge (NYSE: ENB) and Dominion Energy (NYSE: D) are both involved in green energy and working to position themselves to prosper in a lower-carbon future. Their approaches to the megatrend differ: Enbridge is a midstream infrastructure giant pivoting toward renewables, while Dominion is an electric utility engaging in a massive effort to decarbonize its power generation fleet.
Dominion delivers regulated electricity to more than 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina. It’s seeing a surge in demand in northern Virginia and North Carolina because of an explosion in data center growth in those markets. The company’s renewable energy projects, including solar, offshore wind, and hydroelectric, generate more than 2,500 megawatts — enough to power 625,000 homes. It is also the largest producer of carbon-free electricity in New England, thanks to its Millstone nuclear power facility in Connecticut.
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Over the past year, Dominion’s stock has risen by more than 10%. As a regulated utility, it enjoys predictable cash flows, and it has distributed dividends for 392 consecutive quarters. Though it has not increased its payouts since 2022, it still has a relatively high yield of about 4.3% at the current share price. However, the company’s lofty payout ratio of around 87% is a concern, even though it has increased its annual revenues by more than 25% over the past decade.
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In the third quarter, Dominion’s earnings per share (EPS) rose 6% year over year to $1.16, as operating earnings rose 10% to $921 million. Management has said that it expects annual EPS growth of 5% to 7% through 2029.
The company is spending big to further align its operations with the green energy future that it sees coming. In its $50 billion five-year capital plan, more than 80% of the funding is earmarked for zero-carbon power generation and grid modernization.
Enbridge, by contrast, is still very much part of the fossil-fuel industry. It operates the world’s longest crude oil and hydrocarbon liquids pipeline system, and that business provides about 60% of its total revenue.
As a midstream company, it charges oil and natural gas extractors fees to move their products from their sources to refineries. This part of its business is steady and based on long-term, fee-based contracts. It’s also the largest natural gas utility franchise in North America. That segment, though not exactly a “green energy” business, is responsible for nearly 20% of its revenue.
But it also produces renewable energy from its offshore wind farms in Europe and solar and wind installations in North America. This is its smallest but fastest-growing business. In Q3, that segment’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 16% year over year to $100 million. It has several large renewable energy projects in the works, including its $1.1 billion, 815-megawatt Sequoia Solar project in Texas that includes Toyota(NYSE: TM) and AT&T(NYSE: T) among its long-term contracted customers.
In the first nine months of 2025, Enbridge’s adjusted EBITDA rose 9% year over year to $14.7 billion. Distributable cash flow per share grew by 2% to $4.24.
Enbridge stock is up by around 14% over the past year, and its dividend yield of about 5.4% will make it even more enticing, particularly to income-focused investors. The payout ratio is unfortunately above 100% right now, but if interest rates fall further, as many experts expect they will, the company’s debt expenses will fall too, freeing up additional cash to cover its dividends. Its natural gas acquisitions and new assets will also boost cash flow to fund the dividend. Enbridge’s management is dedicated to the dividend, and has raised it for 30 consecutive years, including a 3% bump in 2025.
If you’re in the market for a pure-play utility green energy stock, consider adding Dominion Energy to your portfolio. It’s actively retiring fossil fuel plants and replacing them with a massive, regulated portfolio of renewable energy resources, and it’s well positioned to meet the surging electricity demands of the tech industry. In the long run, Dominion is in the right place to benefit from its green energy efforts.
Enbridge may be a better choice right now, though. It’s a high-yield energy play that’s using the cash flows from its legacy midstream operations to fund the growth of a diverse renewables, hydrogen, and carbon capture business. This makes Enbridge a bet on the infrastructure of the green energy transition, and thanks to its high-yielding and dependable dividend, shareholders can afford to be patient as they wait for that bet to fully pay off.
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James Halley has positions in Enbridge. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.
