This 4.4% Dividend Stock Was Hiding in Plain Sight at Canada’s Investment Summit

Pembina is quietly becoming an “all-of-the-above” infrastructure play, with projects tied to LNG exports, AI power demand, and potential new West Coast oil capacity.

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Key Points
  • Pembina is building Cedar LNG and a major gas power plant for Meta’s Alberta data centre.
  • These projects could lift fee-based cash flow, and the stock pays about a 4.4% dividend.
  • Big builds can face delays and politics, so treat new pipelines as upside, not guaranteed earnings.

Canada’s Investment Summit was packed with eye-watering numbers. One trillion dollars of potential investment. Hundreds of billions for energy. Data centres consuming enough electricity to make yesterday’s grid planners reach nervously for another coffee.

Yet one Canadian company quietly sits at the intersection of almost all of it.

Pembina Pipeline (TSX: PPL) wasn’t a named speaker on the summit’s main energy panel, although chief executive officer Scott Burrows attended the event. More importantly for investors, Pembina already owns projects tied directly to the themes global investors spent two days discussing. That includes LNG exports, new pipelines, artificial-intelligence (AI) power demand and getting Canadian resources to customers outside the United States.

That makes Pembina considerably more interesting than another pipeline collecting tolls.

Paper Canadian currency of various denominations

Source: Getty Images

Its summit story

Global investors repeatedly emphasized that Canada doesn’t suffer from a shortage of capital. It needs large, financeable projects capable of putting that capital to work. Pembina already has one.

Its Cedar LNG project in British Columbia is a 3.3-million-tonne-per-year floating LNG facility majority owned by the Haisla Nation, with Pembina owning 49.9%. The project is under construction and scheduled to begin operating in late 2028. That gives Western Canadian natural gas producers another route into global markets rather than leaving everything pointed south.

Then there’s an even newer growth engine. Pembina and its partners approved the $4.6 billion Greenlight Electricity Centre, a 932-megawatt natural-gas power plant dedicated to Meta‘s enormous Alberta data-centre development.

Suddenly, Pembina isn’t merely transporting the fuel. It’s moving further into the infrastructure needed to power AI. Investors looking through Canadian energy stocks may want to pay attention to that shift.

A very profitable customer

Greenlight is expected to begin operating in the second half of 2030. Pembina expects the project to generate roughly $310 million in annual adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), net to the company. Better still, its long-term tolling agreement is designed to generate capacity payments rather than leaving Pembina completely exposed to fluctuating electricity prices.

That sounds rather familiar. Pipelines became attractive dividend investments partly because long-term contracts can turn enormous physical infrastructure into relatively predictable cash flow. Pembina is now attempting to apply a similar model to data-centre electricity.

Management believes its existing projects and development pipeline can drive 5% to 7% compound annual growth in fee-based adjusted EBITDA per share through 2030. That’s the metric I’d watch.

The really big pipeline

Ottawa and Alberta have also brought Pembina into their proposed new West Coast oil pipeline project. The plan contemplates roughly one million barrels per day of capacity connecting Alberta with Canada’s Pacific coast. Pembina would contribute development and construction expertise alongside Trans Mountain and government partners.

Investors shouldn’t value that pipeline as if it’s already built. The agreement remains non-binding, and major questions around route, financing, Indigenous participation, and final economics remain unresolved. Consider it optionality, not today’s earnings. Pembina’s existing business is already enough for me.

Meanwhile, Pembina recently traded around $65.96. Its latest quarterly dividend of $0.74 works out to $2.94 annually and a yield around 4.4%. Here’s what a $10,000 investment could bring in at writing.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
PPL$65.96151$2.94$443.94Quarterly$9,959.96

For investors building a portfolio of Canadian dividend stocks, that means getting paid while Cedar LNG, Greenlight, and other expansion projects come online.

Foolish takeaway

There are risks. Pembina is spending billions on enormous projects, meaning cost overruns or delays could hurt returns. Greenlight also exposes the company to regulatory and political scrutiny surrounding gas-fired electricity for data centres.

Still, I like what investors are getting today. Pembina already owns pipelines, processing infrastructure and export assets generating cash. The summit simply highlighted how many new doors could now open around them.

Canada wants more LNG exports, more access to global oil markets, and vastly more power for AI. Pembina has managed to find a seat at all three tables.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Pembina Pipeline. The Motley Fool has a disclosure policy.

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