Dividend investing mainly requires patience, and sometimes, that patience gets tested. That’s exactly what’s happening with Canadian Natural Resources (TSX:CNQ) right now. Despite its consistent dividend growth and stable business model, the stock has slipped over 17% from its 52-week high. It’s not an easy pill to swallow, but we must not forget that its long-term fundamentals still look solid.
In fact, the company is producing record volumes, maintaining top-tier operational efficiency, and returning billions to shareholders. While the market might temporarily be reacting to short-term pressures, I see this correction as a long-term gift.
In this article, I’ll share why Canadian Natural Resources has become my top value pick right now and what makes it too attractive to ignore.
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My top value pick for income investors
Being one of Canada’s largest energy companies, Canadian Natural Resources operates in oil sands, natural gas, and offshore projects. Based in Calgary, it’s known for long-life, low-decline assets that help it generate consistent cash flows. CNQ stock is currently trading at $43.14 per share with a market cap of $90.2 billion. On the brighter side, the recent decline in its stock has made its annualized dividend yield look more attractive, which currently stands at 5.5%.
Now, despite CNQ stock being down over 17% from its 52-week high, the company hasn’t shown any signs of weakness. In fact, Canadian Natural Resources reported record-breaking production in the first quarter of 2025, with its total output reaching 1.6 million barrels of oil equivalent per day. That included record quarterly synthetic crude oil production of 595,000 barrels per day with the help of high utilization at its oil sands operations and strategic upgrades completed last year.
Financials remain strong
The company’s first-quarter financials were just as impressive as its operational results. During the quarter, its adjusted earnings came in at $2.4 billion or $1.16 per share. It also reported adjusted funds flow of $4.5 billion, showing its ability to consistently generate strong cash flow, even in a slightly weaker pricing environment.
Higher production volumes, better cost control, and strong realized prices were some of the key factors that helped Canadian Natural Resources post strong financials last quarter. Its synthetic crude sold for over $95 per barrel during the quarter, which significantly lifted its margins. Meanwhile, lower energy costs and high utilization drove down its operating costs across segments, including a 12% year-over-year drop in its oil sands mining costs and a 20% drop in thermal in-situ operations.
These factors make it even more attractive
In recent years, Canadian Natural Resources has been stepping up production while finding better, more efficient ways to operate. The company recently reduced its 2025 capital budget by $100 million without cutting into its production plans. It’s also seeing positive results from its Duvernay acquisition, where it expects better-than-planned production and cost savings this year.
In addition, its oil sands mining operations are among the most cost-effective in the industry, with long-life assets making up the majority of production. In short, Canadian Natural Resources has the scale, cash flow, and operational discipline to ride through market cycles — while paying investors a growing stream of dividends. These dividends have been increased for 25 consecutive years. These factors make it my top value pick right now.
