This magnificent 6.5% dividend yielding stock adds another $700 million in fuel to keep its growth engine running.

Enbridge (ENB 0.81%) recently unveiled another new expansion project. The Canadian Pipeline and Utilities Company will build, own and operate crude oil and natural gas pipelines to support BP (BP 1.29%) recent development Kaskida has given the green light. Enbridge’s $700 million of projects should be online by 2029, when Kaskida begins production, further expanding the company’s long-term growth outlook.

This will adds more fuel to its dividend growth engine. The company raised its payout, which at current share prices exceeds 6.5%, for 29 Justice years.

A growth extender

Enbridge is building two new ones PIPE systems to support BP operations in the Gulf of Mexico. Its Canyon Oil Pipeline system will have the capacity to transport 200,000 barrels per day. It will originate in the Keathley Canyon area and deliver crude oil to the existing Green Canyon 19 platform, operated by Shell Pipeline Company, for delivery to the Louisiana market. Enbridge will also build the Canyon Gathering system, which will have the capacity to transport 125 million cubic meters of gas per day to Magnolia Gas Gathering’s existing pipeline for delivery to the Garden Banks gas pipeline.

BP has signed long-term contracts to support these pipelines. They will provide low-risk Enbridge, utility-like cash flows and returns. BP also has the option to connect future production from its emerging Paleogene portfolio to new pipelines, which Enbridge is designing to accommodate future discoveries. As such, the project will provide Enbridge stable and predictable cash flows as well as future growth opportunities.

A lot of growth is coming down PIPE

Enbridge had already insured a lot of growth before adding these new pipeline projects to the backlog. The company ended the second quarter with a C$24 billion ($17.7 billion) secured capital program. These projects cover all four main franchises (liquid pipelines, gas transport, gas distribution and storage and renewables). These projects are expected to be online by 2028. It has now extended its growth outlook by another year. with the addition of the new pipelines in the Gulf of Mexico.

The company has given the green light to several new projects this year. In the second trimester, Enbridge and its partners approved the construction of the Blackcomb pipeline, which will increase gas transportation capacity in the Permian Basin. The company also approved an expansion of its Gray Oak pipeline, fueled by growing demand for oil transportation capacity from its customers. In addition, Enbridge will build Orange Grove solar Texas farm. This $250 million project will provide power AT&T under a long-term contract.

Enbridge also improved its operations and growth prospects by concluding the acquisitions of three gas utilities FROM Dominion Energy. Offers will be accretive to its revenue and strengthening growth profile driven by $3.7 billion in planned capital expenditures over the next three years.

The company’s robust balance sheet and fortress-like financial profile lead to his view that it should be able to grow earnings by around 5% per year over the medium term. This should support continued dividend growth of up to 5% annually. Given the length of the backlog (and robust investment capacity), Enbridge seems well equipped for continues to increase its payments annually until 2029.

An elite dividend growth stock

Enbridge has done a great job growing its dividend over the years. That it seems extremely likely to continue given its ability to keep adding new expansion projects in arrears. How is growth visibility until 2029. With a high dividend yield, low risk profile and clear growth prospects, Enbridge is a no-brainer stock for those looking for a high-quality dividend payer to hold for the long term.