TC Energy (TSX:TRP) and Enbridge (TSX:ENB) rebounded nicely over the past two years after taking a beating when interest rates soared in Canada and the United States. Investors who missed the recovery are wondering if TRP stock or ENB stock is still attractive and good to buy for a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio focused on dividends and total returns.
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TC Energy outlook
TC Energy trades near $75.50 at the time of writing. The stock is up from $45 in the fall of 2023 and has gained more than 13% in the past year.
Falling interest rates in 2024 and 2025 helped drive the rebound, but TC Energy also made good progress over the past two years in its effort to shore up the balance sheet through the sale of non-core assets and the spin-off of its oil pipelines business.
The company had to take on extra debt to get its Coastal GasLink pipeline completed. The budget more than doubled to roughly $14.5 billion, but the 670 km natural gas pipeline is now in operation, moving natural gas from Canadian producers to the LNG Canada export facility on the coast of British Columbia.
Revenue from Coastal GasLink, as well as from the 715 km Southeast Gateway pipeline in Mexico that came in 13% under budget and went into operation in 2025, is helping drive revenue growth. TC Energy also has a robust capital program on the go that management says will deliver 5% to 7% per year in compound annual growth in comparable earnings before interest, taxes, depreciation, and amortization (EBITDA).
This should support ongoing dividend increases. TC Energy raised the dividend in each of the past 25 years. Investors who buy TRP stock at the current level can get a dividend yield of 4.5%.
Enbridge outlook
Enbridge trades near $65 per share at the time of writing, compared to $44 at the bottom of the slump in October 2023. The stock is actually down from the 12-month high of around $70.
Enbridge’s strategy in recent years focused on diversifying its business lines. The company purchased an oil export terminal in Texas and is a partner on the Woodfibre LNG export facility being built in British Columbia. Enbridge also expanded its utility operations through its US$14 billion acquisition of three natural gas utilities in the United States in 2024. In addition, Enbridge bought a solar and wind developer in the United States.
The result of these moves is a more balanced revenue stream that complements the core oil and natural gas transmission infrastructure.
Enbridge is working on $35 billion in secured capital projects. As the new assets are completed, the company expects adjusted EBITDA and distributable cash flow to increase by about 5% per year starting in 2027.
An increase in oil shipments from Venezuela to refineries on the U.S. Gulf Coast could displace some supply currently coming from Canada. Investors are concerned that this could impact volumes on Enbridge’s oil pipeline network. Time will tell, but the overall impact is expected to be small. Enbridge recently announced a plan to expand its capacity to the U.S. market. If Enbridge follows through on that investment, it would be a positive signal for investors.
Enbridge raised the dividend in each of the past 31 years. Investors who buy ENB stock at the current price can get a dividend yield of 6%.
Is one a better pick?
TC Energy and Enbridge both pay attractive dividends that should continue to rise, supported by large capital programs. Dividend growth will likely be similar at the two pipeline giants over the medium term, so income investors might want to make Enbridge the first choice for the higher yield.
Otherwise, TC Energy could have more upside potential due to its core focus on natural gas transmission. If you are seeking long-term total returns, I would probably split a new investment between the two stocks today.
