In the ever-evolving landscape of energy investments, dividend stocks remain a popular choice for long-term investors seeking stable income. In the Canadian market, Pembina Pipeline (TSX:PPL) and Brookfield Renewable Partners (TSX:BEP.UN) are two prominent energy dividend stocks. Today, let's get into them both, deciphering which stock might be a better long-term investment.

Pembina Pipeline

Pembina Pipeline reported robust earnings for the fourth quarter (Q4) of 2023, with $698 million in earnings and a record annual adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $3.82 billion. Despite a slight miss in Q1 2024, the company remains financially strong, demonstrating consistent revenue and earnings growth.

Pembinaâs growth is driven by increased pipeline volumes, new contracts, and strategic acquisitions such as interests in Alliance and Aux Sable for $3.1 billion. Key projects like the Dallas path-to-zero initiative and the Nipisi pipeline further bolster its growth outlook.

The company is also known for its consistent dividend payouts, supported by its solid financial performance and strategic growth initiatives. This reliability makes it attractive for income-focused investors with a 5.7% dividend yield.

However, there are a few things to consider. Challenges include higher-than-expected capital costs for the Cedar LNG project and potential frac constraints. Even so, Pembinaâs strategic focus on new projects and acquisitions helps mitigate these risks.

Brookfield Renewable Partners

So, let's look at Brookfield Renewable as a comparison. The company reported revenue growth to $875 million in Q1 2024 but missed earnings estimates with an earnings per share of -$0.23. Despite this, the revenue increase reflects its expanding renewable energy portfolio.

Brookfield Renewable is positioned well in the renewable energy sector, with significant investments in solar, wind, and battery storage technologies. Strategic acquisitions, like Neoen, enhance its growth potential and market position. Plus, it offers partnerships with several other established companies.

Brookfield Renewable offers a competitive dividend yield, supported by stable cash flows from its diversified renewable energy assets. The companyâs commitment to sustainability and expanding projects adds to its long-term appeal. So, that dividend yield of 5.7% looks stable.

However, the primary risk is the recent earnings performance, with consistent misses against analyst estimates. Even so, the long-term growth potential in the renewable energy sector and strategic acquisitions provide a solid foundation for future performanceâ.

Bottom line

Both Pembina Pipeline and Brookfield Renewable Partners offer attractive opportunities for long-term investors. Pembina Pipeline is ideal for those seeking stability and reliable dividends backed by strong financial performance and strategic growth in the energy sector. Meanwhile, Brookfield Renewable Partners appeals to investors focused on growth and sustainability, leveraging its expanding renewable energy portfolio and strategic acquisitions.

Ultimately, the choice depends on individual investment goals and risk tolerance. Pembina offers more immediate financial stability and dividend reliability, while Brookfield Renewable provides long-term growth potential in the renewable energy market. Either way, both look like strong dividend stocks on the TSX today.

The post Pembina Vs. Brookfield Renewable: Which High-Yield Dividend Stock Is Better? appeared first on The Motley Fool Canada.