Canadian National Railway (TSX:CNR) is a powerful player in the Canadian stock market and an exceptional opportunity for investors looking to build long-term wealth. Because of the recent pullback in the stock, now may be the perfect time to buy this blue-chip stock. Here's why you shouldn't hesitate to invest in CN Rail today.

1. Reliable long-term returns

Over the past decade, CN Rail has provided investors with a solid annual return of 7.8%. When factoring in reinvested dividends, that number rises to 8.2% annually. While this slightly underperforms the broader Canadian stock market, which delivered 8.9% annually with reinvested cash distributions, the current pullback in CN Rail stock makes it an attractive buy. During periods like these, long-term investors have the chance to buy at a cheaper price, making the most of CN Rail's long-term performance over time. Even in tough market conditions, the stock has managed to outpace inflation, increasing shareholders' purchasing power.

2. Resilient earnings and strong growth potential

CN Rail's ability to deliver resilient earnings through all phases of the economic cycle is another compelling reason to own this stock. Over the past decade, its adjusted earnings per share (EPS) have grown at a compound annual growth rate (CAGR) of 9%. This steady earnings growth allows the company to command a premium valuation, which is why CN Rail remains a key player in the railroad industry. With a share price of around $147, the stock is currently considered fairly valued, offering a good entry point for those looking to invest in a proven growth machine.

The consistent growth in earnings reflects the strength of CN Rail's operations. The company's extensive rail network — spanning over 31,000 km of track — connects key ports across Canada, the United States, and the Gulf of Mexico. This strategic positioning ensures that CN Rail remains integral to the transportation of goods, offering a reliable source of income for years to come.

3. A healthy dividend that grows over time

While CN Rail's current dividend yield is about 2.3%, it is one of the most reliable dividend payers in Canada. The company has a stellar 28-year track record of increasing its dividend, and its 10-year dividend growth rate of 13.9% highlights its commitment to rewarding investors. Though its most recent dividend hike was a modest 7%, it reflects the company's caution in light of slower earnings growth while still maintaining a healthy payout ratio of 46% of adjusted earnings.

What makes this dividend particularly appealing is its sustainability. CN Rail's operating cash flow, which has grown at a 9.7% CAGR over the past decade, supports the dividend's longevity and potential for future increases. Long-term investors who bought CN Rail shares 15 years ago are now seeing a yield on cost of over 11%, demonstrating the power of compounding dividends.

The Foolish investor takeaway: A durable business built for the long term

Canadian National Railway is not just a stock — it's a business with lasting power. With its extensive rail network, strategic market positioning, and strong financials, CN Rail is poised to continue growing for decades. Whether you're a seasoned investor or just starting out, this stock offers a reliable opportunity for long-term wealth-building. After a recent pullback, now is the perfect time to buy in — before the next rally.