Canadians received some more bad economic news this week. Salary projections for 2026 are expected to slow to 3.1% as employers continue to tighten their budgets. And, of course, as compensation growth continues to cool and a softer job market continues, that leaves pressure on households to shorten the gap.
That’s why dividend stocks are such strong investments. It’s during these times that Canadians need to make up the shortfall while they figure out their finances. And Pembina Pipeline (TSX:PPL) remains one of the top options.
About Pembina
Pembina stock is a pipeline company making significant strides in its infrastructure growth. The dividend stock recently reported earnings that included the announcement of over $1 billion in pipeline expansions, making now a great time to invest. Projects include Fox Creek-to-Namao and Taylor-to-Gordondale, which will strengthen Pembina’s position, specifically in the Western Canadian Sedimentary Basin (WCSB).
What’s more, the quarter saw the announcement of its enhanced export capabilities. These projects bolster the 50,000 barrels per day the dividend stock has access to of propane export capacity. This increased market reach and profitability give it improvements that any investor will want to consider.
Into earnings
So, let’s dive further into those earnings. In the second quarter of 2025, Pembina reported $417 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). This helped it reach $1.013 billion. Now, to be clear, earnings were slightly down year over year. However, adjusted cash flow from operations came in at $698 million.
Why does this matter? This underscores the dividend stock’s strong operational cash flow, and that’s crucial for funding all these upcoming projects. Investors can therefore look forward to not just new and enhanced projects, but also the advancements of others. This includes Cedar LNG in partnership with Haisla Nation, as well as the acquisition of a full interest in Duvernay Assets. These are long-term producer commitments that keep the cash coming in.
Making income
So, what kind of income are we talking about here? Pembina declared a quarterly dividend of $0.71 per share during the second quarter. That brings it to $2.84 annually! Therefore, a $7,000 investment this year could immediately bring in annual dividend income of $383 as of writing, dished out quarterly.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| PPL | $51.76 | 135 | $2.84 | $383.40 | Quarterly | $6,978.60 |
Now, it’s not all sunshine and lollipops. Investors will want to keep an eye on that drop in net revenue, as well as earnings from lower natural gas line margins and volume disruptions. Furthermore, regulatory developments, including Bill C-5 and proactive provincial energy policies, could be hit or miss for its growth initiatives.
Bottom line
For new investors, Pembina stock remains a compelling option, especially if you’re looking for income through dividends at least. It has aggressive expansion plans, a growing capacity of exports, and a strong dividend history. Despite pressure from recent earnings, it’s a stable option that Canadian investors can depend on — particularly during tough times like these when Canadians need all the cash they can carry.
