With many well-liked Canadian dividend shares buying and selling close to document highs, buyers are questioning which high TSX shares may nonetheless be good to purchase for a self-directed Tax-Free Financial savings Account (TFSA) or Registered Retirement Financial savings Plan (RRSP) portfolio targeted on revenue and long-term complete returns.
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Canadian Nationwide Railway
Canadian Nationwide Railway (TSX:CNR) trades close to $155 per share on the time of writing. The inventory is up about 15% in 2026, however remains to be approach under the $179 it reached in early 2024.
The pullback within the share value via a lot of 2024 and 2025 had a number of causes. Initially, CN took a success as a consequence of labour strikes at key ports that the railway serves. Wildfires in Alberta in 2024 additionally hindered operations. Prospects needed to discover different routes to maneuver their merchandise throughout these interruptions, resulting in a lower in anticipated quantity for the yr, in addition to a rise in some bills. CN nonetheless managed to squeeze out a small income acquire in 2024, however earnings slipped in comparison with the earlier yr.
Heading into 2025, the corporate anticipated a a lot better efficiency and even supplied a robust outlook for earnings progress. That every one modified with the arrival of U.S. tariffs. Key Canadian sectors, together with metal, aluminum, and a few forestry merchandise, took a success. Administration needed to abandon steerage and mentioned the tariffs in the end had a $350 million unfavourable influence on the enterprise in 2025.
Dangers
The tariff scenario stays the identical to this point in 2026, and there may be added uncertainty on how negotiations will pan out with the Canada-U.S.-Mexico Settlement (CUSMA). A July 1 deadline to decide on whether or not to increase CUSMA, modify the settlement, or scrap it altogether will doubtless be missed. As such, readability on tariffs may not come for a number of months.
Hovering gasoline will put stress on CN if it will possibly’t go via the added bills to its clients. That being mentioned, trucking corporations face the identical downside, so CN may doubtlessly choose up some enterprise from the trucking section.
A proposed merger in the US between Union Pacific and Norfolk Southern would create an east-west rail big within the American market connecting 100 ports and 43 states. Analysts are nonetheless making an attempt to find out the final word influence that may have on CN, which has rail strains working from Canada south to the American Gulf Coast.
Alternative
Demand for Canadian commodities is rising as a result of closure of the Strait of Hormuz. Fertilizer, coal, and oil are transported by CN to Canadian ports for transport abroad. This might assist offset among the ache within the different segments impacted by American tariffs.
CN stays very worthwhile, regardless of the headwinds. The corporate reported adjusted web revenue of $1.1 billion in Q1 2026, down about 5% from the identical interval final yr. CN is utilizing extra money to purchase again shares and continues to lift the dividend. The board has elevated the distribution to shareholders in every of the previous 31 years.
As quickly as a brand new commerce deal is introduced between the U.S. and Canada, there must be a rebound in demand for CN’s companies as companies can have readability on tariffs.
The underside line
Volatility is anticipated within the close to time period, however CN must be engaging on the present stage for a buy-and-hold portfolio. You probably have some money to place to work, this inventory deserves to be in your radar.
