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BMO Capital Updates Pembina Pipeline (PBA) Outlook After Estimate Review

Pembina Pipeline Corporation (NYSE:PBA) is included among the 15 Global Dividend Stocks to Diversify Your Portfolio.

On December 16, BMO Capital analyst Ben Pham lowered the firm’s price target on Pembina Pipeline Corporation (NYSE:PBA) to C$58 from C$59 and kept an Outperform rating on the shares.

Pembina pays a quarterly dividend and offers an annualized yield of about 5.5%. That steady income stream still matters to investors who rely on cash returns. Its contract-based infrastructure model also helps. These assets tend to perform more consistently when markets feel unsettled.

In the third quarter of 2025, Pembina Pipeline Corporation (NYSE:PBA) reported adjusted EBITDA of $1.03 billion. That represented a modest year-over-year increase. Higher contracted volumes helped, along with inflation-linked toll adjustments on key systems like the Peace Pipeline. Pipeline utilization improved as demand strengthened.

Facilities operations added to the results as well. Natural gas processing volumes rose, particularly in the Duvernay region. What stood out most was cash flow. Adjusted cash flow from operating activities reached $648 million in the quarter. That more than covered dividend payments. For investors focused on dividends, this kind of coverage matters. Especially at a time when dividend growth across the market is slowing or being put on hold.

Pembina Pipeline Corporation (NYSE:PBA) operates one of the largest energy transportation and midstream networks in Canada. Its assets move crude oil, natural gas, and natural gas liquids through pipelines, processing facilities, and export infrastructure.

While we acknowledge the potential of PBA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PBA and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 13 Highest Paying Monthly Dividend Stocks to Buy and 10 Best Debt Free Dividend Stocks to Buy Now.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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