When you’re investing in stocks, you want to see your invested money grow fast. However, the economic uncertainties due mainly to high inflation, rising interest rates, and geopolitical tensions have badly affected most Canadian stocks this year. So, if you started your investment journey recently, then it’s very likely that you might be sitting on big losses right now. But you’re not alone, as the recent stock market turmoil has affected not only new investors but also experienced ones.
Despite sharp declines in the share prices of most growth companies, many fundamentally strong dividend stocks from the energy sector continue to rally in 2022. In this article, I’ll talk about one such energy stock: Canadian Natural Resources (TSX:CNQ). Before we discuss whether CNQ stock is still worth buying right now, let’s find out how this top Canadian dividend stock has helped investors’ money grow lately, despite all the economic challenges.
CNQ stock price movement in 2022
Canadian Natural Resources is among the top-performing TSX Composite components in 2022. CNQ stock started the year on a strong note, as it jumped by 44.8% in the first quarter as a continued rally in commodity prices and strong demand for energy products amid supply challenges boosted its fundamental outlook. While the stock saw a 15% downside correction in the second and third quarters combined, its stock price rally resumed in October; it has jumped by more than 25% on a month-to-date basis. With this, CNQ stock now trades at $80.44 with solid 53.7% year-to-date gains. By comparison, the main TSX benchmark has slipped by 10.9% in 2022.
So, if I’d bought about 1,500 shares of CNQ by investing $78,510 in it at the start of the year, this investment would have grown to $120,660 by now, excluding dividends. While this example gives an idea about the kind of returns CNQ stock has delivered this year, I always prefer diversifying my stock portfolio instead of investing a big sum of money in a single stock.
In 2022 so far, Canadian Natural has paid $3.75 per share in dividends, including $2.25 per share in quarterly dividends and a special dividend of $1.50 per share. On 1,500 shares, I would have received about $5,625 in dividends by now.
Is CNQ stock worth buying right now?
Canadian Natural Resources is among the most reliable dividend stocks in Canada. Its flexible capital allocation, strong balance sheet, predictable cash flows, and well-diversified asset base make CNQ stock a great investment for the long term. In the five years between 2016 and 2021, the energy giant’s total revenue rose by 186%, and its adjusted earnings jumped by an outstanding 1,125%. Moreover, its revenue and earnings have been beating estimates for the last nine quarters in a row — clearly reflecting Canadian Natural’s improving financial growth trends.
As the company continues to focus on opportunistic acquisitions and operational efficiency, you could expect its strong financial growth trends to remain intact in the long run, which should help its stock continue soaring. Given that, it’s not too late yet to buy CNQ stock, despite its big year-to-date rally. At the current market price, the stock also offers a decent dividend yield of 3.7%, which can help investors earn reliable passive income each year.