When volatility returns, Canadian buyers often do greatest with companies that preserve incomes even when the temper turns bitter. Search for important providers, pricing energy, and money circulation you possibly can depend on. Bonus factors if the Canadian inventory should purchase again shares, elevate dividends modestly, and keep disciplined on spending as an alternative of attempting to win headlines. So let’s take into account one that appears like a stellar long-term purchase in any market.
CNR
Canadian Nationwide Railway (TSX: CNR) runs some of the essential freight networks within the nation. It hauls grain, power merchandise, autos, client items, and industrial inputs throughout Canada and into the U.S. It additionally does the unglamorous job that issues most in a uneven market: it strikes the true economic system. When markets get jumpy, that “toll street” really feel can turn into very interesting.
During the last yr, CN saved leaning into productiveness and effectivity, and it confirmed up within the working story. It talked about labour value reductions and ongoing initiatives to run a tighter railroad, whereas nonetheless attempting to maintain service ranges robust for patrons. In brief, it centered on doing extra with what it already has, not simply spending more cash.
It additionally flagged some real-world friction that buyers mustn’t ignore. CN pointed to regulatory uncertainty that might constrain crew availability, which issues as a result of railroads win or lose on staffing and fluidity when circumstances get powerful. Winter operations may also check every part directly, from locomotives to crew scheduling. Volatility doesn’t solely present up in inventory charts, however in operations too.
Into earnings
The newest earnings provide you with a clear snapshot of why CN can maintain up when markets get uneven. In This autumn 2025, it reported income of $4.5 billion, up 2% yr over yr, and internet revenue of $1.2 billion, up 9%. Diluted earnings per share (EPS) got here in at $2.03, with an working ratio of 61.2%, which improved from the prior yr. That working ratio enchancment issues, as a result of it reveals value self-discipline doing actual work.
The complete-year numbers stayed regular in the proper locations. For 2025, CN reported income of $17.3 billion, up 2%, and internet revenue of $4.7 billion, up 6%. Diluted EPS got here in at $7.57, up 8%, and free money circulation reached $3.3 billion, up 8%. It additionally repurchased about 15 million shares for roughly $2 billion, which may quietly increase per-share outcomes over time.
Trying forward, CN set its 2026 capital program spending at $2.8 billion, down about $500 million from 2025, which suggests its heavy funding cycle has began to normalize. That may assist free money circulation, nevertheless it additionally places stress on execution, because the railroad nonetheless must preserve the community resilient. On valuation, it trades with a dividend yield round 2.5%, which isn’t bargain-basement, however it’s typically the worth of high quality in a defensive compounder.
Backside line
May CN be one of the best Canadian inventory to personal if volatility returns? It may, if you’d like a enterprise tied to the true economic system, with robust money era and a confirmed potential to enhance effectivity even when circumstances really feel messy. It is also a move should you want an enormous yield as we speak, or should you fear about quantity sensitivity in a downturn, climate disruptions, or regulatory and labour constraints. If volatility reveals up, CN’s attraction is straightforward: you personal the community, and also you let time do the heavy lifting.