Enbridge (TSX:ENB) and TC Energy (TSX:TRP) are among the largest pipeline companies in the world. The two blue-chip dividend stocks have delivered stellar returns to long-term shareholders. After adjusting for dividends, Enbridge stock has returned 1,700% to shareholders since 2001. Comparatively, TC Energy stock is up close to 700% over the last 25 years.
Despite these outsized returns, Enbridge and TC Energy offer an attractive dividend yield in January 2026. Let’s see which pipeline stock is a good buy right now.
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Which TSX stock is still a good buy?
Both Enbridge and TC Energy are capitalizing on surging North American energy demand, but their approaches and risk profiles differ in meaningful ways.
- Enbridge reported record third-quarter adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), with its mainline system transporting 3.1 million barrels per day.
- The company sanctioned $3 billion in new growth projects during the quarter, bringing total sanctioned capital over the past year to $5.1 billion.
- These investments span liquids pipelines, gas transmission, and storage facilities, with weighted average build multiples around 5.9 times EBITDA.
- Enbridge expects to finish 2025 in the upper half of its EBITDA guidance while maintaining debt-to-EBITDA at 4.8 times, within its target range.
TC Energy’s story centers on project execution and rising returns. It delivered projects 15% under budget while achieving 8% year-over-year EBITDA growth through nine months.
More impressively, TC Energy’s sanctioned portfolio now generates an implied weighted average after-tax return of 12.5%, up from 8.5% just a few years ago. The company projects EBITDA growth of 5% to 7% through 2028, reaching between $12.6 billion and $13.1 billion.
The key differentiator lies in capital efficiency and balance sheet strength.
- TC Energy expects 2025 net capital expenditures at the low end of its $5.5 billion to $6 billion range and has clear visibility to achieving its 4.75 times debt-to-EBITDA target.
- This financial discipline enables the company to fund roughly 80% of its three-year capital plan with operating cash flows, without issuing equity.
Enbridge offers broader diversification across liquids, gas, utilities, and renewables, with particular strength in gas storage, where it owns over 600 billion cubic feet of capacity across North America. It added significant LNG-adjacent storage capacity with recent Egan and Moss Bluff expansions.
TC Energy’s advantage comes from higher project returns and superior execution metrics, combined with a focused natural gas and power strategy. The company’s 85 percent exposure to long-haul natural gas pipelines with take-or-pay contracts provides stable cash flows, while its Bruce Power investment offers unique nuclear exposure with equity income expected to double by 2035.
A focus on dividend growth
Analysts tracking ENB stock forecast the annual dividend from $3.77 per share in 2025 to $4.21 per share in 2029. This indicates an annual growth rate of less than 3%. TC Energy is expected to grow its dividend at a similar rate from $3.40 per share to $3.77 per share.
Given consensus price targets, ENB stock trades at a discount of 7.7%. So, dividend-adjusted gains could be closer to 13% over the next 12 months.
Comparatively, TC Energy trades at a discount of 3% in January 2026 and offers shareholders a 4.5% yield.
For investors prioritizing execution excellence, TC Energy presents a compelling case. Those seeking broader diversification and established dividend growth might favour Enbridge’s more diversified portfolio.
