Enbridge vs. Telus: Which Is the Better Dividend Stock to Own Through 2026?

Enbridge and Telus both offer attractive yields, but their financials and underlying fundamentals reveal a big difference in dividend stability and financial momentum.

Jitendra Parashar

Author Bio Jitendra Parashar is a financial journalist who has been writing for The Motley Fool Canada since June 2020. With more than 13 years of experience in financial journalism, equity research, and market analysis, he helps investors understand market developments and identify long-term investment opportunities. Before joining The Motley Fool Canada, Jitendra spent several years at Market Realist covering U.S. equities, major economic developments, and developments in the automotive and technology industries. He also worked in commodity and currency research at brokerage firms, gaining insight into how economic trends, central bank decisions, and geopolitical events influence financial markets. Jitendra writes for beginner investors, dividend seekers, and Canadians looking to build wealth over the long term. He also contributes to the daily TSX Today series, explaining key Canadian market developments and highlighting news investors should watch. Based in India, Jitendra follows Canadian and U.S. markets closely. Outside of work, he enjoys travelling in the Himalayas, street and nature photography, and exploring programming and artificial intelligence. Education MBA in Finance and International Business Bachelor's degree in Journalism Areas of Expertise Canadian and U.S. financial markets, long-term equity investing, dividend investing, macroeconomic and geopolitical trends, automotive stocks, emerging technologies, and artificial intelligence. Social Media Profiles LinkedIn Muck Rack Favorite Investment Quote “Simplicity is the master key to financial success.” — John C. Bogle

Published September 3, 4:30 pm EDT

While investors love Canadian dividend stocks like Enbridge (TSX: ENB) and Telus (TSX: T) for their reliable dividends, the two companies offer investors very different risk-and-reward profiles on the TSX today. Both are familiar Canadian companies offering similar yields today, but they arrive there from very different directions. Enbridge continues to generate relatively steady cash flow while investing in a large pipeline of growth projects. Telus, on the other hand, is going through a financial reset after cutting its dividend and making debt reduction a much bigger priority.

In this article, I’ll compare Enbridge and Telus and explain which Canadian dividend stock I think is the better one to own through 2026 and beyond.

Canadian investor contemplating U.S. stocks with multiple doors to choose from. — A person stands in front of several doors representing different U.S. stock options for Canadian investors.

Enbridge stock

For dividend investors seeking a combination of dependable income and visible growth, Enbridge looks like a strong stock to own. The Calgary-based energy infrastructure giant transports and distributes oil and natural gas across North America. Its operations also include gas utilities and renewable power assets.

After rallying by 44% over the last two years, ENB stock currently trades at $69.70 per share with a market cap of $152.2 billion and an annualized dividend yield of roughly 5.6%.

Its steady stock performance is mainly backed by a solid operating performance. In the latest quarter ended in June, Enbridge’s adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization) climbed about 3% year-over-year (YoY) to $4.8 billion.

Meanwhile, the pipeline giant’s cash provided by operating activities jumped 27% YoY to $4.1 billion. Distributable cash flow rose nearly 2% to $2.9 billion. Its secured growth backlog has also reached roughly $41 billion.

That combination of income, steady operations, and growth visibility makes it an attractive dividend stock to own through 2026 and beyond, in my opinion.

How does Telus stock compare?

While Enbridge offers a combination of steady cash flow and visible growth, Telus is currently dealing with a different set of priorities.

The Vancouver-based telecom giant’s stock currently trades at $13.23 per share with a market cap of about $21 billion and an annualized dividend yield of roughly 5.7%. That yield is slightly higher than Enbridge’s 5.6%, but Telus’s performance has disappointed investors lately. While Enbridge shares have risen about 5% over the last year, Telus stock has plunged roughly 41%.

Telus’s latest financial results help explain this weakness. In the second quarter, its consolidated service revenue fell 1% YoY, while adjusted EBITDA declined 2%. As a result, its adjusted net profit also dropped 26% to $254 million. By comparison, Enbridge’s adjusted EBITDA grew about 3% YoY in its latest quarter, while its distributable cash flow also edged higher.

Telus’s latest results did have one bright spot, as cash provided by its operating activities jumped 15% YoY last quarter and free cash flow rose 2% to $545 million. However, the biggest difference between these two dividend stocks is the direction of their payouts. While Enbridge continues to pay a quarterly dividend of $0.97 per share, Telus recently reset its quarterly dividend by 55% to $0.19 per share.

The dividend reset is expected to save Telus about $2.7 billion through 2028, with that cash going toward debt reduction. The telecom giant is targeting net debt-to-adjusted EBITDA of about 3 times or lower by the end of 2028. It is also reviewing non-core assets, cutting costs, and focusing investments on wireless, PureFibre, and digital and artificial intelligence infrastructure.

Enbridge vs. Telus: Which one to buy now?

For investors willing to accept more uncertainty, Telus could offer recovery potential if these efforts strengthen its financial position. Still, Enbridge currently offers steadier financial trends, better recent stock performance, and stronger dividend visibility, making it the more attractive income stock of the two, in my opinion.