Every time I build my watchlist of Canadian dividend stocks, Enbridge (TSX:ENB) shows up. An energy infrastructure giant, ENB stock has raised its dividend payout over the last 31 years.
Over the last two decades, ENB stock has returned close to 900% to shareholders after adjusting for dividend reinvestments. However, another TSX dividend stock should be on your shopping list in August 2026.
Let’s see why I would rather own Canadian Natural Resources (TSX:CNQ) than Enbridge right now.
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Why this Canadian stock is outgrowing Enbridge
Canadian Natural just posted its second-quarter results for 2026, and the numbers are hard to ignore.
The company delivered adjusted net earnings of $4.6 billion, or $2.20 per share. Adjusted funds flow came in at $6.9 billion, or roughly $3.30 per share. Both were the strongest in the company’s history.
Production hit a record too. Canadian Natural averaged approximately 1,677,000 barrels of oil equivalent per day in the quarter, up about 256,000 barrels per day, or 18%, from the same period last year. Its oil sands mining and upgrading operations alone averaged 625,000 barrels per day, with upgrader utilization at 106%.
By comparison, Enbridge is a slower-moving machine. Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) increased by just over $130 million compared to the same quarter last year.
CNQ raised its dividend again this year, marking the 26th consecutive year of increases. The board approved a quarterly dividend of $0.63 per common share, a yield of 3.6%.
Canadian Natural returned approximately $1.3 billion to shareholders via dividends and $1.1 billion through share buybacks. It also lowered balance sheet debt by $1.6 billion.
President Scott Stauth summed up the company’s approach well on the earnings call:
“Our ability to effectively allocate capital across our large and diverse asset base provides us with a unique competitive advantage and when combined with accretive acquisitions continues to create significant long-term value for our shareholders.”
Canadian Natural has approximately $8 billion of liquidity available, and management is targeting 75% of free cash flow toward share buybacks going forward.
Enbridge’s balance sheet tells a different story. The company exited the quarter at 5.1 times debt-to-EBITDA, above its target range, though it noted that figure would fall within range after adjusting for currency swings.
Enbridge is still a well-run company. It just carries more leverage while it waits for its growth backlog to come online.
Growth plans still carry some uncertainty
Enbridge ended Q2 with a secured capital backlog of $41 billion, which includes $20 billion in new project sanctions targeted for 2026 and 2027.
But management was candid that some of its biggest liquids expansion plans, like the Mainline Optimization project, are being resequenced due to policy uncertainty and commodity price swings.
Producers are not yet ready to commit to large-scale pipeline expansions until governments finalize new regulatory frameworks.
Canadian Natural faces a similar wait on its own medium-and long-term growth projects, which remain on hold pending definitive agreements tied to the trilateral memorandum of understanding between the Oil Sands Alliance, Alberta, and the federal government.
The bottom line on these two Canadian stocks
Both CNQ and ENB are well run. Both have long dividend growth streaks that income investors respect. But if I am choosing one dividend stock to lean on right now, I am picking Canadian Natural Resources.
Its record production, record earnings, and aggressive debt reduction give it more room to keep raising its payout without stretching its balance sheet.
Enbridge remains a reasonable holding for investors who want steady, low-volatility infrastructure exposure. For me, though, Canadian Natural’s combination of growth and shareholder returns makes it the stronger pick among Canadian stocks today.
