In this article, I have identified two blue-chip dividend stocks: Canadian natural Resources (TSX:CNQ) And Brookfield Renewable Partners (TSX:BEP.UN), both are poised to deliver inflation-reducing returns for long-term investors.
Over the past decade, more than 500% of CNQ shares have returned to shareholders, after adjusting for dividend reinvestments. By comparison, BEP shares have returned “only” 238% since January 2016.
Let’s take a look at which TSX dividend stocks are 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 different approaches to energy investments, each delivering strong results in the third quarter of 2025.
- Canadian Natural reported record quarterly production of 1.6 million barrels of oil equivalent per day in the third quarter, up 19% from the previous year.
- The company’s oil sands operations performed well, producing 581,000 barrels of synthetic crude oil per day with a utilization rate of 104% and industry-leading operating costs of just $21 per barrel.
- The recent swap transaction with Shell Canada added 31,000 barrels per day of bitumen production while improving operational efficiency across all mining operations.
- The company generated $3.9 billion in adjusted capital flows during the quarter and returned $1.5 billion to shareholders through dividends and share repurchases.
Shareholder returns since the beginning of the year were $6.2 billion, contributing to production per share growth of 16% compared to 2024. Canadian Natural has increased its dividend for 25 years in a row at a compound annual growth rate of 21%, with the debt-to-EBITDA (earnings before interest, taxes, depreciation and amortization) ratio remaining just 0.9x.
Brookfield Renewable Partners delivered funds from operations of US$302 million, up 10% year-on-year, driven by contracted inflation-linked cash flows and strong execution across its global portfolio.
BEP’s Hydroelectric segment generated $119 million in resources from operations, more than 20% more than the previous year, driven by growing demand for baseload power from hyperscalers and data center operators.
A major development was Brookfield’s strategic partnership with the U.S. government to build at least $80 billion worth of new Westinghouse nuclear reactors.
This agreement allows BEP to benefit from decades of reactor construction, fuel supply contracts and maintenance services. The company also closed $2.8 billion in assets in the third quarter as it advanced contracts to supply 4,000 gigawatt hours per year.
Are TSX Dividend Stocks Undervalued?
Given consensus price target estimates, CNQ shares are trading at a 4% discount in January 2026. Taking into account the 4.9% dividend yield, the cumulative return over the next twelve months could be closer to 9%.
The dividend yield for BEP shares is higher, at 5.5%. Additionally, the TSX dividend stock is trading at 17%, which suggests the total return could be around 22%.
Canadian Natural offers stable cash flows, consistent dividends and influence over oil prices. Brookfield Renewable provides exposure to renewable energy growth, nuclear 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.
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