Canadian investors have several dividend stocks that they can add to their portfolio. However, it’s essential to look beyond a company’s dividend yield to analyze if the payout is sustainable across market cycles.
In this article, I compare two blue-chip TSX dividend stocks, Canadian Natural Resources (TSX: CNQ) and Enbridge (TSX: ENB), to evaluate which is a better buy right now.
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Canadian Natural Resources posted record numbers
In Q2 2026, Canadian Natural Resources reported eight new operational and financial records in Q2, including its highest-ever quarterly production of roughly 1,677,000 barrels of oil equivalent per day.
President Scott Stauth pointed to strength across the board, including record Oil Sands Mining production of about 625,000 barrels per day, with upgrader utilization running at 106%, well above what those facilities were designed to handle.
The blue-chip energy stock reported adjusted net earnings of $4.6 billion or $2.20 per share, while adjusted funds flow stood at $6.9 billion, both company records. Canadian Natural also returned close to $4 billion to shareholders in Q2, split between dividends, share buybacks and debt reduction.
CNQ has now raised its dividend for 26 consecutive years, with a quarterly payout of $0.625 per share.
Is this TSX dividend stock a good buy?
Enbridge is one of the world’s largest energy infrastructure companies. It operates four primary business segments, which include liquids pipelines, gas transmission, gas distribution, and renewable power, to provide diversification.
CEO Greg Ebel described the setup bluntly. “I believe the Enbridge investment proposition has never been stronger,” he said, pointing to a $41 billion secured capital backlog and a $50 billion organic growth opportunity set running through 2030.
Enbridge is also chasing the same Western Canadian growth story as Canadian Natural, just from the pipeline side.
Chief Financial Officer Pat Murray reported the company ended Q2 with a 5.1 times debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) ratio, which is elevated.
While Enbridge is part of a cyclical sector, it has raised dividends for 31 consecutive years.
Why the trilateral MOU matters for Canadian energy stocks
Here is where things get interesting, and where I think a lot of retail investors are underestimating the story.
Both companies flagged a new trilateral memorandum of understanding between the Oil Sands Alliance, the Alberta government, and the federal government. The agreement is meant to set a fiscal and regulatory framework that could unlock new pipeline capacity out of Western Canada.
Stauth called it “transformative for Canada,” explaining that improved egress to the West Coast could broaden the customer base for oil sands producers and strengthen pricing.
Until the paperwork is signed, Canadian Natural said its medium- and long-term growth projects, including its Jackfish and Pipe 2 developments, remain on hold.
Both companies are well-run and have showcased decades of dividend growth. However, if I have to choose a winner, CNQ stock is the better buy right now. Canadian Natural is generating record cash flow, which it uses to reward shareholders and strengthen the balance sheet.
Enbridge remains a solid, defensive stock for investors who want steady, utility-like income. But its leverage is higher, its growth is more back-end loaded, and its dividend growth, while impressive, has been smaller in percentage terms than what Canadian Natural has delivered alongside its buybacks.
If you are choosing one name to add today, Canadian Natural Resources looks like the stronger combination of dividend income, balance sheet strength, and coiled-up growth potential once Ottawa and Alberta finalize their agreement this fall.
