Better Energy Stock: Canadian Natural Resources vs. Brookfield Renewable Partners

The demand for energy is forecast to grow steadily over the next two decades, driven by the artificial intelligence megatrend and global economic growth.

In this article, I have identified two blue-chip dividend stocks: Canadian Natural Resources (TSX:CNQ) and Brookfield Renewable Partners (TSX:BEP.UN), both poised to deliver inflation-beating returns to long-term investors.

Over the last 10 years, CNQ stock has returned over 500% to shareholders after adjusting for dividend reinvestments. Comparatively, BEP stock has returned “just” 238% since January 2016.

Let’s see which TSX dividend stock is still a good buy right now.

Is CNQ stock still a better buy than BEP in 2026?

Canadian Natural Resources and Brookfield Renewable Partners represent two distinct approaches to energy investing, each delivering strong results in Q3 2025.

• Canadian Natural reported record quarterly production of 1.6 million barrels of oil equivalent per day in Q3, up 19% from the prior year.
• The company’s oil sands operations performed well, producing 581,000 barrels per day of synthetic crude oil with utilization rates of 104% and industry-leading operating costs of just US$21 per barrel.
• The recent swap transaction with Shell Canada added 31,000 barrels per day of zero-decline bitumen production while enhancing operational efficiency across mining operations.
• The company generated US$3.9 billion in adjusted funds flow during the quarter and returned US$1.5 billion to shareholders through dividends and share buybacks.

Year-to-date shareholder returns totaled $6.2 billion, contributing to 16% per-share production growth compared to 2024. Canadian Natural has increased its dividend for 25 consecutive years at a compound annual growth rate of 21%, maintaining a debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) ratio of just 0.9 times.

Brookfield Renewable Partners delivered funds from operations of US$302 million, up 10% year-over-year, driven by contracted inflation-linked cash flows and strong execution across its global portfolio.

BEP’s hydroelectric segment generated US$119 million in funds from operations, up over 20% from the prior year, driven by growing demand for baseload power from hyperscalers and data center operators.

A key development was Brookfield’s strategic partnership with the U.S. government to build at least US$80 billion worth of new Westinghouse nuclear reactors.

This agreement positions BEP to benefit from decades of reactor construction, fuel supply contracts, and maintenance services. The company also closed US$2.8 billion in asset sales in Q3 while advancing contracts to deliver 4,000 gigawatt hours annually.

Are the TSX dividend stocks undervalued?

Given consensus price target estimates, CNQ stock trades at a 4% discount in January 2026. If we account for its 4.9% dividend yield, cumulative returns could be closer to 9% over the next 12 months.

The dividend yield for BEP stock is higher at 5.5%. Moreover, the TSX dividend stock trades at 17%, suggesting total returns could be around 22%.

Canadian Natural offers stable cash flows, consistent dividends, and leverage to oil prices. Brookfield Renewable provides exposure to renewable energy growth, nuclear power expansion, and long-term contracted cash flows.

The choice depends on whether investors prefer traditional energy with immediate returns or clean energy with transformational growth potential.

The post Better Energy Stock: Canadian Natural Resources vs. Brookfield Renewable Partners appeared first on The Motley Fool Canada.

Should you invest $1,000 in Canadian Natural Resources right now?

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 21 percentage points.*

They revealed what they believe are 10 TSX Stocks for 2026… and Canadian Natural Resources made the list – but there are 9 other stocks you may be overlooking.

Don’t miss out on our Top 10 TSX Stocks for 2026, available when you join our mailing list!

Get the 10 stocks instantly #start_btn5 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn5 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn5 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn5 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of January 15th, 2026

More reading

• How to Pick the Best 5%+ Dividends in the Canadian Energy Sector
• Take Full Advantage of Your TFSA With These 5 Dividend Stars
• TFSA: 3 Canadian Dividend Stocks to Buy and Hold for Decades
• Prediction: 10 Years From Now, You’ll be Glad You Bought These Winners
• 5 Top Stocks With High Dividend Growth to Buy Now

Fool contributor Aditya Raghunath has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners and Canadian Natural Resources. The Motley Fool has a disclosure policy.