Two of Canada’s most dependable blue-chip stocks recently reported earnings, which beat consensus estimates. Enbridge (TSX: ENB) delivered another quarter of steady growth, while Canadian National Railway (TSX: CNR) raised its outlook for the second half of 2026.
Both TSX giants deserve a spot on any list of Canada’s top dividend stocks. But if I had to put new money to work today, I would lean toward CNR stock. Here is why.
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Enbridge stock keeps delivering for income investors
Enbridge remains one of the most reliable Canadian dividend stocks around. The company has raised its payout for 31 straight years, a streak few businesses can match.
In Q2 of 2026, it grew adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) by more than $130 million year over year. Mainline volumes averaged 3.1 million barrels per day, and management reaffirmed full-year 2026 guidance.
Enbridge has sanctioned close to $9 billion in new projects so far this year, working toward up to $20 billion by the end of 2027. It also expects to invest $50 billion in organic growth opportunities through 2030, $41 billion of which is already secured,
Moreover, management plans to return between $40 billion and $45 billion to shareholders over the next five years.
Debt-to-EBITDA came in at 5.1 times, marginally above the top of the company’s internal estimates. Management pointed to a stronger U.S. dollar as the main driver and said the ratio sits back in range once you adjust for currency.
The bull case of investing in CNR stock
Canadian National Railway grew Q2 sales by 11% year over year, driven by a 5% growth in revenue ton miles. Adjusted diluted earnings per share came in at $2.08, up 11% year over year.
Free cash flow rose about 20%, or roughly $300 million, driven by stronger earnings and tighter cost control.
CN president and CEO Tracy Robinson summed up the quarter, stating, “This team has delivered another quarter of strong performance,” she told analysts on the July 24th earnings call, pointing to earnings growth alongside real volume gains rather than one-time items.
CN’s leverage sits at 2.6 times, comfortably inside its own 2.7 times target for the year. Compare that with Enbridge’s leverage running slightly higher, and you can see which company has more room to invest without stretching its financials.
CN also just struck new agreements with Union Pacific that open a faster route into Mexico through Memphis, plus a contingent path into Kansas City if regulators approve the broader Union Pacific merger.
Management has already identified close to $100 million in cost savings this year through its internal Fast Track productivity program, with more expected to follow.
My take on Enbridge stock versus CNR stock
Enbridge remains one of the top dividend stocks for investors who want steady, predictable income from pipelines that move nearly a fifth of the natural gas used in the United States. It is an energy infrastructure giant that has raised the dividend payout across market cycles.
But CN offers something Enbridge cannot right now: guidance that is moving higher, backed by a balance sheet with additional breathing room.
I would not sell Enbridge if I owned it. The dividend streak makes a strong case for holding on and benefiting from a higher yield-at-cost. But if I have to increase my position, I will bet on CNR stock, given a combination of raised guidance, lower leverage, and a new growth corridor into Mexico.
Income-focused investors should still keep Enbridge on their radar. Growth-focused investors, or anyone looking to balance a yield-heavy portfolio with a name that still has room to compound, may want to take a closer look at CNR.
