Some investors want rock-solid reliability. Others chase the adrenaline of gold rallies. But a portfolio can have both, and Canadian National Railway (TSX:CNR) and Kinross Gold (TSX:K) show how pairing stability with upside can work in practice. One is a decades-old blue-chip with predictable cash flows. The other is a top-tier miner riding a multi-year surge in gold prices. Together, these balance each other out.
CNR
Canadian National has been through a tougher year in share price terms, down more than 15% over the past year. Slower freight volumes and softer economic activity weighed on revenue, which dipped slightly year over year in the second quarter. But the Canadian stock still managed to grow earnings by over 5%, thanks to cost discipline and strong operating margins of more than 41%.
That kind of profitability is rare in transportation. CNR also remains committed to rewarding shareholders, with a dividend yield of roughly 2.8% and a payout ratio below 50%, leaving plenty of room for growth. The risk here is an economic slowdown, but the company’s vast network, pricing power, and long-term contracts provide a durable earnings base.
K
Kinross Gold, in contrast, is on a tear. Its share price has more than doubled in the past year as gold prices broke records and demand stayed strong. The second quarter saw production of over 512,000 gold equivalent ounces, a 41.7% revenue jump year over year, and a record $646.6 million in free cash flow. Margins jumped 68% from last year, outpacing the rise in gold prices, showing just how much operational leverage the Canadian stock has.
Kinross has also been aggressively returning capital, with $300 million already given back to shareholders in 2025 through dividends and buybacks. Annual production guidance is on track, and major development projects like Great Bear and Round Mountain Phase X are progressing, promising future production growth. The flip side is commodity risk as gold prices can swing, and higher costs or operational delays could crimp margins. But with a strong balance sheet and over $1.1 billion in cash, Kinross is well-positioned to ride out volatility.
A perfect pairing
What makes these two such a compelling combination is the contrasting cycles. Canadian National’s fortunes are tied to the health of the economy. It thrives when trade is flowing and industry is active. Kinross, meanwhile, often benefits when uncertainty rises and investors flock to gold as a safe haven. This means the two can move in opposite directions during different phases of the market, smoothing out portfolio swings.
In the past year, that’s exactly what’s happened. As CNR faced headwinds from softer freight demand, Kinross surged with rising gold prices. The gains from one helped offset the dip in the other, illustrating the value of diversification even within just two holdings. Income investors get a stable, growing dividend from CNR, while growth seekers can look to Kinross for capital appreciation potential, especially if gold prices remain elevated.
Bottom line
Looking ahead, CNR will be focused on improving volumes as the economy stabilizes, potentially benefiting from any recovery in North American manufacturing and trade. Efficiency gains and capacity investments should keep margins healthy. Kinross will be watching gold markets closely. Yet with several high-grade projects moving toward production, it has organic growth in hand even without higher prices.
For investors who don’t want to choose between steady income and the potential of outsized gains, pairing a reliable blue-chip like Canadian National with a strong gold producer like Kinross offers a practical path. One anchors the portfolio with predictability, while the other injects upside when conditions align. Over time, it’s a blend that can keep returns on track. Whether markets are running on the rails or glittering with opportunity.
