Better Dividend Stock: TC Energy vs. Enbridge

As 2025 comes to a close, it’s time for most dividend investors to slow down and look back at what has actually worked in their portfolios. While big price moves in the short-term may grab attention, consistent income is what builds confidence over time. That is where Canadian energy stocks continue to earn their place.

And in the country’s energy pipeline space, TC Energy (TSX:TRP) and Enbridge (TSX:ENB) are two familiar names for investors who value consistency. Both operate critical energy infrastructure across North America, and both rely on long-term contracts to generate cash flow. But beyond just high yield, cash flow stability, growth visibility, and balance sheet discipline matter just as much when picking a dividend stock for long-term investment. Let’s compare TC Energy vs. Enbridge and break down which dividend stock looks better positioned for 2026 and beyond.

Dividend yield and income reliability compared

With income at the center of the TC Energy vs. Enbridge comparison, let’s start by looking at their dividends.

Enbridge currently offers a higher yield. ENB stock trades at $64.40 per share and delivers an annualized dividend yield of about 6.0%, paid quarterly. At the same time, TC Energy trades higher at $75.48 per share and offers a lower but still solid 4.5% annualized yield.

While Enbridge pays more income upfront, both companies support dividends with long-term contracted assets. In the third quarter of 2025, Enbridge generated $2.6 billion in distributable cash flow, matching last year’s level and directly supporting its payouts. Meanwhile, TC Energy declared a quarterly dividend of $0.85 per share, reflecting confidence in its income stream even as its earnings faced short-term pressure.

Cash flow and recent performance side by side

Over the past year, TC Energy shares have risen nearly 15%, while Enbridge has gained 8.4%. With this, TC Energy now carries a market cap of around $78.6 billion compared with Enbridge’s much larger $140.5 billion footprint.

In the latest quarter, TC Energy posted comparable earnings of $0.77 per share, with its comparable EBITDA (earnings before interest, taxes, depreciation, and amortization) rising to $2.7 billion. Its earnings declined on a YoY (year-over-year) basis due mainly to higher interest costs and timing factors rather than weaker demand. On the brighter side, the company’s natural gas deliveries increased across multiple systems, and liquefied natural gas (LNG)-related volumes climbed 15% YoY, strengthening its cash flow.

For the same quarter, Enbridge posted adjusted earnings of $0.46 per share and adjusted EBITDA of $4.3 billion, setting a quarterly record. Its cash generation remained stable during the quarter despite higher financing costs tied to its recent investments.

Comparing growth visibility and balance sheet discipline

On the one hand, TC Energy recently extended its EBITDA growth outlook through 2028, targeting 5% to 7% annual growth. More than $5 billion of its projects have been sanctioned over the past 12 months, all backed by long-term take-or-pay or cost-of-service contracts. Many of these projects entered service ahead of schedule and under budget, strengthening the company’s cash flow predictability.

On the other hand, Enbridge brings scale and diversification to the table. The company exited the third quarter with a 4.8x debt-to-EBITDA ratio, staying within its target. The company’s secured growth backlog totals about $35 billion through 2030, and management reaffirmed post-2026 growth of around 5% annually across EBITDA, earnings, and distributable cash flow.

More importantly, Enbridge also announced a 3% dividend increase for 2026, marking its 31st consecutive annual increase, which clearly adds to its long-term credibility among income-focused stocks in Canada.

The post Better Dividend Stock: TC Energy vs. Enbridge appeared first on The Motley Fool Canada.

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More reading

• A Dividend Giant I’d Buy Over Enbridge Stock Right Now
• Which Dividend Stocks in Canada Can Thrive Through Rate Cuts?
• Canadian Investors: The Best $14,000 TFSA Approach
• 3 Reasons to Buy Enbridge Stock Like There’s No Tomorrow
• Here’s What’s Driving the TSX’s Top-Performing Stocks

Fool contributor Jitendra Parashar has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.