Best Stock to Buy Right Now: Enbridge vs TC Energy?

Enbridge (TSX:ENB) and TC Energy (TSX:TRP) are both renowned Canadian dividend stocks and renowned energy infrastructure stocks. They are giants across North America. Enbridge has a market cap of $142 billion and a dividend yield of 5.9%. TC Energy has a market cap of $78 billion and a dividend of 4.5%.

While both operate similar infrastructure businesses, there are nuances to each. If you are wondering which one might be a better buy, here are some thoughts.

Enbridge: The North American energy behemoth

Enbridge remains the larger business, especially after TC Energy spun out its $14.5 billion Keystone Pipeline system into South Bow last year. Enbridge is the more diversified of the two stocks. It operates liquids pipelines, a gas transmission network, gas storage/distribution utilities, and renewable power assets.

The fact that it moves around 30% of the crude oil produced in North America indicates the scale of this company. 98% of its assets are cost-of-service or contracted. Its portfolio is further hedged by its diverse asset base and strong mix of high-quality counterparties.

For the first nine months of 2025, Enbridge saw adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rise 9% to $14.7 billion. Earnings per share increased 10.3% to $2.34. In the third quarter, Enbridge affirmed its guidance for 9% EBITDA growth for the full year.

All around, 2025 was a strong year for Enbridge. The company just increased its dividend per share by 3%. That is its 31st consecutive annual dividend increase. The company envisions 5% EBITDA, and earnings per share and dividend per share growth in 2026 and 2027.

TC Energy: A natural gas infrastructure major

TC Energy is less diversified and more focused on natural gas infrastructure and power. In fact, it operates over 93,000 kilometres of gas pipelines across Canada, the United States, and Mexico. Thirty percent of the natural gas consumed in North America is transported by TC’s infrastructure.

As a balance to its extensive gas network, it also generates 6,400 megawatts of nuclear power through its Bruce Power subsidiary. Around 98% of TC Energy’s annual EBITDA is regulated or on long-term take-or-pay contracts.

For the first nine months of 2025, EBITDA rose 7.5% to $8 billion. In the third quarter, TC Energy affirmed its intention to grow EBITDA by 7–9% in 2025. Likewise, it targets $12.6 billion to $13.1 billion of EBITDA by 2028, which would imply a 5–7% annual growth rate over the coming three-year period.

TC Energy has increased its dividend for 25 consecutive years and it is likely to raise that dividend by a modest 3–5% annually going forward.

So which dividend stock is a better buy?

Enbridge and TC Energy are parallel entities. Enbridge is larger and more diversified. TC is smaller, but more focused. Both have highly contracted income sources, and both are growing by a mid-single digit rate going forward.

Yet, I think Enbridge edges in front of TC Energy. While it has substantial amounts of debt, its debt ratios are just a little lower than TC Energy’s. Likewise, Enbridge trades at the slightest valuation discount to TC Energy. Enbridge has the higher dividend, and its stock has modestly outperformed TC Energy over the past five years.

For a steady dividend from utility-like companies, both are decent bets for income investors. However, Enbridge wins my pick if I had to choose one over the other.

The post Best Stock to Buy Right Now: Enbridge vs TC Energy? appeared first on The Motley Fool Canada.

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Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.