Investing in dividend stocks remains an attractive strategy given a volatile macro environment and shifting economic landscapes. In addition to a stable stream of recurring income, quality dividend stocks allow you to benefit from long-term capital gains.

While the broader equity indices are trading near all-time highs, investors can still find fundamentally strong undervalued dividend stocks that can deliver outsized returns in 2025 and beyond. Canadian investors looking to deploy $1,000 right now can consider gaining exposure to energy infrastructure giant Enbridge (TSX:ENB) and clean energy powerhouse Brookfield Renewable Partners (TSX:BEP.UN). The two companies offer attractive dividend yields and possess certain competitive advantages, making them enticing investments. Let's dive deeper.

Is ENB a good dividend stock to own?

Valued at a market cap of $131 billion, Enbridge is among the largest companies in Canada. It pays shareholders an annual dividend of $3.77 per share, translating to a forward yield of 6.3%. Notably, its dividends have risen by 10% annually over the last 29 years.

Despite an uncertain macro environment, Enbridge demonstrated strong financial performance and strategic execution in the third quarter (Q3). In fact, it remains on track to end 2024 at the top end of its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and distributable per share (DCF) guidance.

The company had initially estimated EBITDA between $17.7 billion and $18.3 billion, with DCF per share of $5.40 and $5.80 per share in 2024. Given its midpoint DCF per share estimates, Enbridge has a payout ratio of 67%, which provides it with enough room to target accretive acquisitions and lower balance sheet debt.

In the first nine months of 2024, Enbridge added $7 billion to its secured growth program and completed the acquisition of three natural gas utilities from Dominion Energy. It expects to grow EBITDA at a compounded annual growth rate of at least 7% through 2026 due to a robust capital-allocation framework.

Additionally, it has an annual investment capacity of $8 billion, $6 billion of which was allocated towards low-capital intensity expansions, modernization, and utilities rate base investments.

Analysts expect ENB to expand adjusted earnings from $2.78 per share in 2024 to $3.2 per share in 2026. So, priced at 18.8 times forward earnings, ENB stock is reasonably priced and should be part of your dividend portfolio in 2025.

Should you own this TSX dividend stock right now?

Brookfield Renewable Partners delivered a strong performance in Q3, achieving record funds from operations (FFO). Moreover, the company confirmed it is on track to meet its FFO per unit growth target of +10% for 2024.

Brookfield attributed its Q3 results to asset development, acquisitions, and strong pricing across its portfolio. Its diverse business model across global power markets and its focus on mature low-cost technologies have allowed Brookfield Renewable to perform admirably in recent years.

The company pays shareholders an annual dividend of US$1.42 per share, up from US$0.87 per share in 2011. Analysts forecast its adjusted FFO per share to expand from US$1.53 in 2023 to US$2 in 2026, indicating its dividend payout should continue to grow.

Priced at less than 12 times forward FFO, BEP stock is relatively cheap, given its tasty dividend yield of over 6%. Analysts tracking the TSX stock remain bullish and expect it to gain over 25% in the next 12 months.